AMERICAN MIDSTREAM PARTNERS, LP, 10-K filed on 4/1/2019
Annual Report
v3.19.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2018
Mar. 18, 2019
Jun. 30, 2018
Entity Registrant Name American Midstream Partners, LP    
Entity Central Index Key 0001513965    
Document Type 10-K    
Document Period End Date Dec. 31, 2018    
Amendment Flag false    
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Accelerated Filer    
Entity Public Float     $ 387,019,464
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding (in shares)   54,212,212  
Series A      
Entity Common Stock, Shares Outstanding (in shares)   11,342,197  
Series C      
Entity Common Stock, Shares Outstanding (in shares)   9,514,330  
v3.19.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Current assets    
Cash and cash equivalents $ 9,069 $ 8,782
Restricted cash 30,868 20,352
Accounts receivable, net of allowance for doubtful accounts of $591 and $225 as of December 31, 2018 and 2017, respectively 76,632 98,132
Other current assets 27,422 26,386
Total current assets 143,991 153,652
Property, plant and equipment, net 997,708 1,095,585
Goodwill 51,723 128,866
Restricted cash - long term 5,083 5,045
Intangible assets, net 133,992 174,010
Investment in unconsolidated affiliates 337,796 348,434
Other assets 17,403 17,874
Total assets 1,687,696 1,923,466
Current liabilities    
Accounts payable 36,619 41,102
Accrued gas purchases 11,695 19,986
Accrued expenses and other current liabilities 78,612 68,854
Current portion of long-term debt 522,966 7,551
Total current liabilities 649,892 137,493
Asset retirement obligations 67,451 66,194
Other long-term liabilities 18,491 2,080
Long-term debt 500,739 1,201,456
Deferred Tax Liabilities, Net 1,421 8,123
Total liabilities 1,237,994 1,415,346
Commitments and contingencies
Convertible preferred units 324,624 317,180
Equity and partners' capital    
General Partner Interests (981 and 965 units issued and outstanding as of December 31, 2018 and 2017, respectively) (66,591) (96,552)
Limited Partner Interests (54,017 and 52,711 units issued and outstanding as of December 31, 2018 and 2017, respectively) 177,861 273,703
Accumulated other comprehensive income 32 28
Total partners' capital 111,302 177,179
Noncontrolling interests 13,776 13,761
Total equity and partners' capital 125,078 190,940
Total liabilities, equity and partners' capital $ 1,687,696 $ 1,923,466
v3.19.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Allowance for doubtful accounts $ 591 $ 225
General partners' interest units issued (in shares) 981 965
General partners' interest units outstanding (in shares) 981 965
Limited Partner Common Units    
Limited partners, units issued (in shares) 54,017 52,711
Limited partners, units outstanding (in shares) 54,017 52,711
3.77% Senior Notes, due 2031 | Senior Notes    
Debt instrument, interest rate (percent) 3.77% 3.77%
8.50% Senior Notes, due 2021 | Senior Notes    
Debt instrument, interest rate (percent) 8.50% 8.50%
3.97% Trans-Union Secured Senior Notes | Senior Notes    
Debt instrument, interest rate (percent) 3.97% 3.97%
v3.19.1
Consolidated Statements of Operations - USD ($)
shares in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues:                        
Revenues                 $ 783,016,000      
Gains (losses) on commodity derivatives, net                 2,036,000 $ (119,000) $ (1,617,000)  
Total revenue $ 176,962,000 $ 202,346,000 $ 220,217,000 $ 205,829,000 $ 163,037,000 $ 162,290,000 $ 162,030,000 $ 164,078,000 805,354,000 651,435,000 589,026,000  
Operating expenses:                        
Cost of sales                 592,040,000 457,371,000 393,351,000  
Direct operating expenses                 87,677,000 82,256,000 71,544,000  
Corporate expenses                 89,706,000 112,058,000 89,438,000  
Termination fee                 17,000,000 0 0  
Depreciation, amortization and accretion                 87,171,000 103,448,000 90,882,000  
(Gain) loss on sale of assets, net                 (95,118,000) (4,063,000) 688,000  
Impairment of long-lived assets and intangible assets                 1,610,000 116,609,000 697,000 $ 697,000
Impairment of goodwill         78,000,000       0 77,961,000 2,654,000  
Total operating expenses                 780,086,000 945,640,000 649,254,000  
Operating income (loss) (21,878,000) 67,164,000 (7,641,000) (12,377,000) (223,558,000) (20,616,000) (25,574,000) (24,457,000) 25,268,000 (294,205,000) (60,228,000)  
Other income (expense), net:                        
Interest expense, net of capitalized interest                 (82,410,000) (66,465,000) (21,433,000)  
Other income, net                 560,000 36,254,000 254,000  
Earnings in unconsolidated affiliates                 81,929,000 63,050,000 40,158,000  
Income (loss) from continuing operations before income taxes                 25,347,000 (261,366,000) (41,249,000)  
Income tax expense                 (32,995,000) (1,235,000) (2,580,000)  
Loss from continuing operations (14,719,000) 38,183,000 (17,274,000) (13,838,000) (220,335,000) 11,806,000 (25,901,000) (28,171,000) (7,648,000) (262,601,000) (43,829,000)  
Income (loss) from discontinued operations, including gain on sale         1,910,000 44,696,000 (1,801,000) (710,000) 0 44,095,000 (4,715,000)  
Net loss                 (7,648,000) (218,506,000) (48,544,000)  
Net income attributable to noncontrolling interests (33,000) (25,000) (13,000) (45,000) (1,087,000) (621,000) (1,462,000) (1,303,000) (116,000) (4,473,000) (2,766,000)  
Net loss attributable to the Partnership (14,752,000) 38,158,000 (17,287,000) (13,883,000) (219,512,000) 55,881,000 (29,164,000) (30,184,000) (7,764,000) (222,979,000) (51,310,000)  
General Partner's interest in net loss (199,000) 504,000 (225,000) (181,000) (2,883,000) 697,000 (375,000) (420,000) (101,000) (2,981,000) (233,000)  
Limited Partners' interest in net loss $ (14,553,000) $ 37,654,000 $ (17,062,000) $ (13,702,000) $ (216,629,000) $ 55,184,000 $ (28,789,000) $ (29,764,000) $ (7,663,000) $ (219,998,000) $ (51,077,000)  
Basic and diluted:                        
Loss from continuing operations, basic and diluted (in dollars per share) $ (0.41) $ 0.56 $ (0.48) $ (0.42) $ (4.32) $ 0.05 $ (0.69) $ (0.74) $ (0.75) $ (5.70) $ (1.51)  
Loss from discontinued operations, basic and diluted (in dollars per share)         0.03 0.86 (0.03) (0.01) 0.00 0.85 (0.09)  
Net loss, basic and diluted (in dollars per share) $ (0.41) $ 0.56 $ (0.48) $ (0.42) $ (4.29) $ 0.91 $ (0.72) $ (0.75) $ (0.75) $ (4.85) $ (1.60)  
Weighted average number of common units outstanding:                        
Basic and diluted (in shares)                 53,136 52,043 51,176  
Commodity sales                        
Revenues:                        
Revenues                 $ 610,042,000 $ 496,902,000 $ 439,412,000  
Services                        
Revenues:                        
Revenues                 172,974,000      
Total revenue                 $ 193,276,000 $ 154,652,000 $ 151,231,000  
v3.19.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Statement of Comprehensive Income [Abstract]      
Net loss $ (7,648) $ (218,506) $ (48,544)
Unrealized gain (loss) relating to postretirement benefit plan 4 68 (80)
Comprehensive loss (7,644) (218,438) (48,624)
Net income (loss) attributable to noncontrolling interests 116 4,473 2,766
Comprehensive loss attributable to Partnership $ (7,760) $ (222,911) $ (51,390)
v3.19.1
Consolidated Statements of Changes in Equity, Partners' Capital and Noncontrolling Interests - USD ($)
$ in Thousands
Total
Accumulated Other Comprehensive Income
Total Partners Capital
Noncontrolling Interest
Series B
General Partner
Limited Partner
Beginning balance at Dec. 31, 2015 $ 752,041 $ 40 $ 739,930 $ 12,111 $ 33,593 $ (47,091) $ 753,388
Increase (Decrease) in Partners' Capital [Roll Forward]              
Net (loss) income (48,544)   (51,310) 2,766   (233) (51,077)
Cancellation of escrow units (6,817)   (6,817)       (6,817)
Issuance of warrants 4,481   4,481     4,481 0
Issuance of common units, net of offering costs 2,697   2,697       2,697
Conversion of Series B Units 0       (33,593)   33,593
Unitholder contributions 1,998   1,998     1,998  
Unitholder distributions (138,699)   (138,699)     (7,938) (130,761)
General Partner's contribution for acquisition 990   990     990  
Contributions from NCI owners 3,366     3,366      
Distributions to NCI owners (1,488)     (1,488)      
LTIP vesting           (3,486) 3,486
Tax netting repurchases (346)   (346)       (346)
Equity compensation expense 5,658   5,658     3,634 2,024
Contributions 9,900   9,900       9,900
Postretirement benefit plan (80) (80) (80)        
Ending balance at Dec. 31, 2016 585,157 (40) 568,402 16,755 0 (47,645) 616,087
Increase (Decrease) in Partners' Capital [Roll Forward]              
Net (loss) income (218,506)   (222,979) 4,473   (2,981) (219,998)
Issuance of common units, net of offering costs 12,532   12,532       12,532
Unitholder contributions 46,317   46,317     46,317  
Unitholder distributions (124,219)   (124,219)     (1,370) (122,849)
Distribution for acquisition of Delta House and Trans-Union (86,335)   (86,335)     (86,335)  
General Partner's contribution for acquisition 278   278     278  
Unitholder distributions (2,555)   (2,555)     (2,555)  
Acquisition of AmPan (28,593)   (23,948) (4,645)   (299) (23,649)
Contributions from NCI owners 296     296      
Distributions to NCI owners (3,118)     (3,118)      
LTIP vesting           (8,165) 8,165
Tax netting repurchases (2,414)   (2,414)       (2,414)
Equity compensation expense 8,032   8,032     6,203 1,829
Contributions 4,000   4,000       4,000
Postretirement benefit plan 68 68 68        
Ending balance at Dec. 31, 2017 190,940 28 177,179 13,761 0 (96,552) 273,703
Accumulated other comprehensive loss 28            
Increase (Decrease) in Partners' Capital [Roll Forward]              
Net (loss) income (7,648)   (7,764) 116   (101) (7,663)
Issuance of common units, net of offering costs 4,916   4,916       4,916
Distribution for acquisition of Delta House and Trans-Union (38)   (38)     (38)  
Unitholder distributions (87,754)   (87,754)     (1,149) (86,605)
Contributions from NCI owners 11     11      
Distributions to NCI owners (112)     (112)      
LTIP vesting           (5,039) 5,039
Tax netting repurchases (977)   (977)       (977)
Equity compensation expense 4,641   4,641     4,641  
Contributions 31,786   31,786     31,786  
Postretirement benefit plan 4 $ 4 4        
Ending balance at Dec. 31, 2018 125,078   $ 111,302 $ 13,776 $ 0 $ (66,591) $ 177,861
Accumulated other comprehensive loss $ 32            
v3.19.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities        
Net loss $ (7,648) $ (218,506) $ (48,544)  
Adjustments to reconcile net loss to net cash provided by operating activities:        
Depreciation, amortization and accretion 87,171 113,271 107,029  
Amortization of deferred financing costs 7,485 5,117 3,236  
Amortization of weather derivative premium 1,045 1,030 966  
Unrealized loss (gain) on derivative contracts, net 1,156 (1,109) (11,400)  
Non-cash compensation expense 4,641 8,032 5,658  
Impairment of long-lived assets and intangible assets 1,610 116,609 697 $ 697
Gain on MPOG acquisition 0 (35,999) 0  
(Gain) loss on sale of assets and business (95,118) (51,497) 2,756  
Impairment of goodwill 0 77,961 15,456  
Other non-cash items 325 1,848 (486)  
Earnings in unconsolidated affiliates (81,929) (63,050) (40,158)  
Distributions from unconsolidated affiliates 79,361 60,229 40,158  
Deferred tax (benefit) expense (6,702) (82) 2,057  
Bad debt expense 654 147 1,038  
Changes in operating assets and liabilities, net of effects of assets acquired and liabilities assumed:        
Accounts receivable 16,482 (22,336) (5,649)  
Inventory (330) (887) (1,909)  
Risk management assets and liabilities (990) (596) (1,030)  
Other current assets 2,806 4,109 (795)  
Other assets, net (4,125) 0 682  
Accounts payable (3,398) (5,949) (2,242)  
Accrued gas purchases (8,237) 12,095 610  
Accrued expenses and other current liabilities 20,330 8,425 15,384  
Asset retirement obligations (3,290) (697) (858)  
Other liabilities 3,399 0 483  
Transaction costs associated with disposals of assets and business (9,523) (2,545) (288)  
Corporate overhead support from General Partner 0 4,000 7,500  
Net cash provided by operating activities 5,175 9,620 90,351  
Cash flows from investing activities        
Acquisitions, net of cash acquired and settlements 0 (76,150) (2,388)  
Contributions to unconsolidated affiliates (6,140) (81,517) (150,179)  
Additions to property, plant and equipment and other (96,622) (85,054) (147,798)  
Proceeds from sale of assets and business 333,210 171,462 11,788  
Insurance proceeds from involuntary conversion of property, plant and equipment 0 150 0  
Distributions from unconsolidated affiliates, return of capital 18,352 30,618 42,888  
Net cash provided by (used in) investing activities 248,800 (40,491) (245,689)  
Cash flows from financing activities        
Proceeds from issuance of common units, net of offering costs 0 0 2,825  
Contributions   46,317 1,998  
Distributions (80,310) (116,293) (112,136)  
Issuance of convertible preferred units, net of offering costs 0 0 34,413  
Redemption of Series D preferred units 0 (34,475) 0  
Unitholder distributions for common control transactions (38) (86,335) 0  
Contributions from noncontrolling interest owners 11 296 3,366  
Distributions to noncontrolling interest owners (112) (1,776) (1,488)  
LTIP tax netting unit repurchases (977) (2,414) (521)  
Payment of deferred financing costs (6,977) (5,172) (5,327)  
Proceeds from other debt 4,634 5,219 0  
Payments of other debt (5,401) (5,160) (3,136)  
Other (88) (329) 0  
Proceeds on revolving credit agreements 392,400 583,809 425,100  
Payments of revolving credit agreements (575,500) (774,159) (223,950)  
Contributions from the predecessor 0 0 2,400  
Net cash (used in) provided by financing activities (243,134) (264,180) 477,544  
Net increase (decrease) in cash and cash equivalents 10,841 (295,051) 322,206  
Cash, cash equivalents and restricted cash, beginning of period 34,179 329,230 7,024  
Cash, cash equivalents and restricted cash, end of period 45,020 34,179 329,230 7,024
Cash and cash equivalents        
Cash and cash equivalents 8,782 5,666 1,987  
Cash and cash equivalents 9,069 8,782 5,666 1,987
Restricted cash - current 20,352 0 0  
Restricted cash - current 30,868 20,352 0 0
Restricted cash - non-current 5,045 323,564 5,037  
Restricted cash - non-current 5,083 5,045 323,564 5,037
Cash, cash equivalents and restricted cash 34,179 329,230 7,024 $ 7,024
8.50% Senior Notes, due 2021        
Cash flows from financing activities        
Proceeds from senior notes 0 127,969 294,000  
Senior Notes | 3.77% Senior Notes, due 2031        
Cash flows from financing activities        
Proceeds from senior notes 0 0 60,000  
Payments of senior notes (807) (1,677) 0  
Senior Notes | 3.97% Trans-Union Secured Senior Notes        
Cash flows from financing activities        
Payments of senior notes $ (1,755) $ 0 $ 0  
v3.19.1
Consolidated Statements of Cash Flows (Parenthetical) - Senior Notes
Dec. 31, 2018
Mar. 31, 2018
Dec. 31, 2017
Dec. 28, 2017
Dec. 28, 2016
Sep. 30, 2016
May 10, 2016
3.77% Senior Notes, due 2031              
Debt instrument, interest rate (percent) 3.77%   3.77%     3.77%  
8.50% Senior Notes, due 2021              
Debt instrument, interest rate (percent) 8.50% 8.50% 8.50% 8.50% 8.50%    
3.97% Trans-Union Secured Senior Notes              
Debt instrument, interest rate (percent) 3.97%   3.97%       3.97%
v3.19.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Basis of Presentation and Summary of Significant Accounting Policies
Organization, Basis of Presentation and Summary of Significant Accounting Policies

Organization

General

American Midstream Partners, LP and subsidiaries (the “Partnership,” “we,” “us” or “our”) is a growth-oriented Delaware limited partnership that was formed on August 20, 2009 to own, operate, develop and acquire a diversified portfolio of midstream energy assets. The Partnership’s general partner, American Midstream GP, LLC (the “General Partner”), is 77% owned by High Point Infrastructure Partners, LLC (“HPIP”) and 23% indirectly owned by Magnolia Infrastructure Holdings, LLC ("Magnolia"), both of which are affiliates of ArcLight Capital Partners, LLC ("ArcLight"). Our capital accounts consist of notional General Partner units and units representing limited partner interests.

Nature of business

We provide critical midstream infrastructure that links producers of natural gas, crude oil, NGLs, condensate and specialty chemicals to numerous intermediate and end-use markets. During 2018, we operated through five reportable segments: (i) Gas Gathering and Processing Services, (ii) Liquid Pipelines and Services, (iii) Natural Gas Transportation Services, (iv) Offshore Pipelines and Services and (v) Terminalling Services. For further discussion of our reporting segments see Note 23. Reportable Segments.

Our primary assets are strategically located in some of the most prolific onshore and offshore producing regions and key demand markets in the United States. Our gathering and processing assets are primarily located in (i) the Permian Basin of West Texas, (ii) the Cotton Valley/Haynesville Shale of East Texas, (iii) the Eagle Ford Shale of South Texas, (iv) the Bakken Shale of North Dakota and (v) offshore in the Gulf of Mexico. Our transmission assets are in key demand markets in Oklahoma, Alabama, Arkansas, Louisiana, Mississippi and Tennessee.

Basis of presentation

As discussed in Note 4. Acquisitions, we acquired JP Energy Partners LP ("JPE") in a unit-for-unit exchange on March 8, 2017. As both the Partnership and JPE were controlled by ArcLight affiliates, the acquisition represented a transaction among entities under common control. Although the Partnership was the legal acquirer, JPE was considered the acquirer for accounting purposes as ArcLight obtained control of JPE on April 15, 2013 before it obtained control of the Partnership. The accompanying consolidated financial statements represent the JPE historical cost basis consolidated financial statements retrospectively adjusted to reflect its acquisition of the Partnership at ArcLight's historical cost bases effective April 15, 2013, the date on which ArcLight obtained control of the Partnership.

Transactions between entities under common control
 
We may enter into transactions with ArcLight affiliates whereby we receive midstream assets or other businesses in exchange for cash or Partnership equity. As the transactions are between entities under common control we account for the net assets acquired at the affiliate's historical cost basis, whether the transactions are considered assets or business acquisitions. In certain cases, our historical consolidated financial statements will be revised to include the results attributable to the assets acquired from the later of April 15, 2013 (the date Arclight affiliates obtained control of our General Partner) or the date the ArcLight affiliates obtained control of the assets or business acquired.

Consolidation policy

The accompanying consolidated financial statements include accounts of American Midstream Partners, LP, and its controlled subsidiaries. All significant inter-company accounts and transactions have been eliminated in the preparation of the accompanying consolidated financial statements.

Going Concern Assessment and Management’s Plans

Pursuant to FASB ASC 205-40, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern, we are required to assess our ability to continue as a going concern for a period of one year from the date of the issuance of these consolidated financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. As discussed in Note 14. Debt Obligations, our Credit Agreement matures on September 5, 2019 and has not been renewed as of the date of the issuance of these consolidated financial statements.

As discussed in Note 21. Related Party Transactions, the Board received a non-binding proposal from Magnolia, an affiliate of ArcLight to acquire the common units that it does not already own. On March 17, 2019, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Anchor Midstream Acquisition, LLC, a Delaware limited liability company (“Proposed Parent”), Anchor Midstream Merger Sub, LLC, a Delaware limited liability company (“Proposed Merger Sub”), and High Point Infrastructure Partners, LLC, a Delaware limited liability company (“HPIP”), pursuant to which Proposed Merger Sub will merge with and into the Partnership, with the Partnership surviving as a direct wholly owned subsidiary of our General Partner and Proposed Parent (the “Pending Merger”). We expect the Pending Merger to close in the second quarter of 2019. As the Merger Agreement is subject to customary closing conditions and because the Pending Merger may affect how, or if, the Partnership elects to obtain a maturity extension, management has deferred finalization of a renewal of the Credit Agreement.

While we intend to renew or extend the terms of our Credit Agreement, until such time as we have executed an agreement to refinance or extend the maturity of our Credit Agreement, we cannot conclude that it is probable we will do so, and accordingly, this raises substantial doubt about our ability to continue as a going concern.

As the renewal or refinance of the Credit Agreement remains uncertain, the audited financial statements contained in this Form 10-K include a note regarding our ability to continue as a going concern. Prior to our entry into the Waiver, the existence of this going concern qualification in our audited financial statements would have constituted an event of default under the Credit Agreement. Pursuant to the Waiver, the administrative agent and certain lenders (as required by the Credit Agreement) have waived the Financial Statements Audit Requirement for the fiscal year ended December 31, 2018. Although we entered into the Waiver to address the event of default otherwise arising pursuant to the existence of a going concern note and material weakness exception in our audited financial statements contained in this Form 10-K, there is no guarantee that our lenders will agree to waive events of default or potential events of default in the future.

Summary of Significant Accounting Policies

Use of estimates

When preparing consolidated financial statements in conformity with U.S. GAAP, management must make estimates and assumptions based on information available at the time. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, as well as the disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. Estimates and assumptions are based on information available at the time such estimates and assumptions are made. Adjustments made with respect to the use of these estimates and assumptions often relate to information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of consolidated financial statements. Estimates and assumptions are used in, among other things, i) estimating unbilled revenues, product purchases and operating and general and administrative costs, ii) developing fair value assumptions, including estimates of future cash flows and discount rates, iii) analyzing long-lived assets, goodwill and intangible assets for possible impairment, iv) estimating the useful lives of assets and v) determining amounts to accrue for contingencies, guarantees and indemnifications. Actual results, therefore, could differ materially from estimated amounts.

Cash, cash equivalents and restricted cash

We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value because of the short term to maturity for these investments. From time to time we are required to maintain cash in separate accounts the use of which is restricted by the terms of our debt agreements or asset retirement obligations. Such amounts are included in Restricted cash in our Consolidated Balance Sheets.

Inventory

Inventory, which is mainly comprised of crude oil, refined products and NGLs, is stated at the lower of cost or net realizable value. Cost of refined products and NGLs inventory is determined using the first-in, first-out (FIFO) method and the cost of crude oil inventory is determined using the weighted-average method.

Allowance for doubtful accounts

We establish provisions for losses on accounts receivable when we determine that we will not collect all or part of an outstanding balance. Collectability is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. We recorded allowances for doubtful accounts of $0.6 million and $0.2 million, respectively, as of December 31, 2018 and 2017. Bad debt expense for the years ended December 31, 2018, 2017 and 2016 was approximately $0.7 million, $0.1 million and $0.6 million, respectively, which is exclusive of the Propane Business.

Derivative financial instruments

Our net income (loss) and cash flows are subject to volatility stemming from changes in interest rates on our variable rate debt, commodity prices and fractionation margins (the relative difference between the price we receive from NGL sales and the corresponding cost of natural gas purchases). In an effort to manage the risks to unitholders, we may use a variety of derivative financial instruments such as swaps, collars, interest rate caps or forward contracts to create offsetting positions to specific commodity or interest rate exposures. We record all derivative financial instruments in our Consolidated Balance Sheets at fair value as current and long-term assets or liabilities on a net basis by counterparty. We record changes in the fair value of our commodity derivatives in Gains (losses) on commodity derivatives, net while changes in the fair value of our interest rate swaps are included in Interest expense, net of capitalized interest in our Consolidated Statements of Operations.

Our hedging program provides a control structure and governance for our hedging activities specific to identified risks and time periods, which are subject to the approval and monitoring by the board of directors of our General Partner ("the Board"). We employ derivative financial instruments in connection with an underlying asset, liability or anticipated transaction, and we do not use derivative financial instruments for speculative or trading purposes.

The price assumptions we use to value our derivative financial instruments can affect our net income (loss) each period. We use published market price information where available, or quotations from over-the-counter, market makers to find executable bids and offers. The valuations also reflect the potential impact of related conditions, including credit risk of our counterparties. The amounts reported in our consolidated financial statements change quarterly as these valuations are revised to reflect actual results, changes in market conditions or other factors, many of which are beyond our control.

We are also a party to a number of contracts that have elements of a derivative instrument. These contracts are primarily forward purchase and sales contracts with counterparties. Although many of these contracts have the requisite elements of a derivative instrument, these contracts qualify for the normal purchase and normal sales exception because they provide for the delivery of products or services in quantities that are expected to be used in the normal course of operating our business and the price in the contract is directly associated with the price of the product or service being purchased or sold. As a result, these contracts are not recorded in our consolidated financial statements until they are settled.

Fair value measurements

We apply the authoritative accounting provisions for measuring the fair value of our derivative financial instruments and disclosures associated with our outstanding indebtedness. We define fair value as an exit price representing the expected amount we would receive when selling an asset or pay to transfer a liability in an orderly transaction with market participants at the measurement date.

We use various assumptions and methods in estimating the fair values of our financial instruments. The carrying value of all non-derivative financial instruments included in current assets (including cash, cash equivalents, restricted cash and accounts receivable) and current liabilities (including accounts payable but excluding short-term debt) approximates the applicable fair value due to the short maturity of those instruments.

We employ a hierarchy which prioritizes the inputs we use to measure recurring fair value into three distinct categories based upon whether such inputs are observable in active markets or unobservable. We classify assets and liabilities in their entirety based on the lowest level of input that is significant to their fair value measurement. Our methodology for categorizing assets and liabilities that are measured at fair value pursuant to this hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest level to unobservable inputs as outlined below:

Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and
Level 3 – Inputs are unobservable and considered significant to fair value measurement.

We utilize a mid-market pricing convention, or the "market approach," for valuation for assigning fair value to our derivative assets and liabilities. Our credit exposure for over-the-counter derivatives is directly tied to our counterparty and continues until the maturity or termination of the contracts. As appropriate, valuations are adjusted for various factors such as credit and liquidity considerations.

Property, plant and equipment

We capitalize expenditures related to property, plant and equipment that have a useful life greater than one year. We also capitalize expenditures that improve or extend the useful life of an asset. Maintenance and repair costs, including any planned major maintenance activities, are expensed as incurred.

We record property, plant and equipment at cost and recognize depreciation expense on a straight-line basis over the related estimated useful lives of the assets which range from 3 to 40 years. Our determination of the useful lives of property, plant and equipment requires us to make various assumptions, including the supply of and demand for hydrocarbons in the markets served by our assets, normal wear and tear of the facilities and the extent and frequency of maintenance programs.

We classify long-lived assets to be disposed of through sales that meet specific criteria as held for sale. We cease depreciating those assets effective on the date the asset is classified as held for sale. We record those assets at the lower of their carrying value or the estimated fair value less the cost to sell. Until the assets are disposed of, our estimate of fair value is re-determined when related events or circumstances change.

Impairment of long lived assets

We evaluate the recoverability of our property, plant and equipment and intangible assets with definite lives when events or circumstances indicate we may not recover the carrying amount of the assets. We continually monitor our operations, the market and business environment to identify indicators that could suggest an asset or asset group may not be recoverable. We evaluate the asset or asset group for recoverability by estimating the undiscounted future cash flows expected to be derived from their use and disposition. These cash flow estimates require us to make projections and assumptions for many years into the future for pricing, demand, competition, operating cost, contract renewals and other factors. An asset or asset group is considered impaired when the estimated undiscounted cash flows are less than the carrying amount. In that event, an impairment loss is recognized to the extent that the carrying amount of the asset or asset group exceeds its fair value as determined by quoted market prices in active markets or present value techniques. The determination of fair values using present value techniques requires us to make projections and assumptions regarding future cash flows and weighted average cost of capital. Any changes we make to these projections and assumptions could result in significant revisions to our evaluation of the recoverability of our property, plant and equipment and the recognition of an impairment loss in our consolidated statements of operations.

Goodwill impairment

We record goodwill for the excess of the cost of an acquisition over the fair value of the net assets of the acquired business. Goodwill is reviewed for impairment at least annually, as of October 1st of each year, or more frequently if an event or change in circumstance indicates that an impairment may have occurred. We first assess qualitative factors to evaluate whether it is more likely than not that an impairment has occurred, and it is therefore necessary to perform the one-step quantitative goodwill impairment test. If the one-step quantitative goodwill impairment test indicates that the goodwill is impaired, an impairment loss is recorded, which is the difference between the carrying value of the reporting unit to its fair value, with the impairment loss not to exceed the amount of goodwill recorded.

When performing a quantitative impairment test, we generally determine the fair value of our reporting units ("RU") using a discounted cash flow method. In the event we enter into an agreement to sell all or substantially all of an RU, we will utilize such information. While using the discounted cash flow method, we must make estimates of projected cash flows related to assets, which include, but are not limited to, assumptions about revenue growth rates, operating margins, weighted average costs of capital and future market conditions, the use or disposition of assets, estimated remaining life of assets and future expenditures necessary to maintain current operations. We also must make certain estimates and assumptions, including, among other things, changes in general economic conditions in regions in which our markets are located, the availability and prices of energy commodities (such as natural gas, crude oil and refined products), our ability to negotiate favorable sales agreements, the risks that natural gas exploration and production activities will not occur or be successful, our dependence on certain significant customers and producers of natural gas and competition from other companies. The fair value is estimated using the income approach based on significant inputs not observable in the market and thus represent a Level 3 measurement.

Under the discounted cash flow method, we determine fair value based on estimated future cash flows and earnings before interest, income tax, depreciation and amortization (“EBITDA”) of each RU including estimates for capital expenditures, discounted to present value using the risk-adjusted industry rate, which reflects the overall level of inherent risk of an RU. Cash flow projections are derived from one-year budgeted amounts and five-year operating forecasts plus an estimate of later period cash flows, all of which are evaluated by management. Subsequent period cash flows are developed for each RU using growth rates that management believes are reasonably likely to occur. The annual budget process is typically completed near the annual goodwill impairment testing date, and management uses the most recent information for the annual impairment tests. The forecast is also subjected to a comprehensive update annually in conjunction with the annual budget process and is revised periodically to reflect new information and revised expectations.

The estimates of future cash flows and EBITDA are subjective in nature and are subject to impacts from our business risks. While we believe we have made reasonable estimates and assumptions based on available information to calculate the fair value, if future results are not consistent with our estimates, changes in fair value estimates could result in additional impairments in future periods that could be material to our results of operations.

Intangible assets

We record the estimated fair value of acquired customer contracts, relationships and dedicated acreage agreements as intangible assets. These intangible assets have definite lives and are subject to amortization on a straight-line basis over their economic lives, currently ranging between 5 and 30 years. We assess intangible assets for impairment together with related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Investment in unconsolidated affiliates

We hold membership interests in entities that own and operate natural gas pipeline systems and NGL and crude oil pipelines in and around Louisiana, Alabama, Mississippi and the Gulf of Mexico. While we have significant influence over these entities, we do not control them and therefore, they are accounted for using the equity method and are reported in Investment in unconsolidated affiliates in our Consolidated Balance Sheets. We evaluate the recoverability of these investments on a regular basis and recognize impairment write downs if we determine a loss in value represents an other-than-temporary-decline. The unconsolidated affiliates that were determined to be variable interest entities (“VIE”) due to disproportionate economic interests and decision making rights were further evaluated under the VIE method of consolidation. In each case, we lack the power to direct the activities that most significantly impact the unconsolidated affiliate’s economic performance. Therefore, as we do not hold a controlling financial interest in these affiliates, we account for our related investments using the equity method. In each case, we are not obligated to absorb losses greater than our proportional ownership percentages. We have joint venture arrangements in which we and our partners share proportional ownership and responsibilities and receive returns in accordance with our ownership percentage. See further discussion in Note 11. Investments in unconsolidated affiliates.

Deferred financing costs

Costs incurred in connection with our revolving credit facilities are deferred and charged to interest expense over the term of the related credit agreement. Such amounts are included in Other assets, net in our Consolidated Balance Sheets. Costs incurred in connection with our long-term debt such as the 8.50% Senior Notes and 3.77% Senior Notes are also deferred and charged to interest expense over the respective term of the agreements; however, these amounts are reflected as a reduction of the related obligation. Gains or losses on debt repurchases or extinguishment include any associated unamortized deferred financing costs.

Asset retirement obligations

Asset retirement obligations ("ARO") are legal obligations associated with the retirement of tangible long-lived assets that result from the asset's acquisition, construction, development and operation. An ARO is initially measured at its estimated fair value. Upon initial recognition, we also record an increase to the carrying amount of the related long-lived asset. We depreciate the asset using the straight-line method over the period during which it is expected to provide benefits. After initial recognition, we revise the ARO to reflect the passage of time and for changes in the estimated amount or timing of cash flows.

We have legal obligations requiring us to decommission our offshore pipeline systems at retirement. In certain rate jurisdictions, we are permitted to include annual charges for removal costs in the regulated cost of service rates we charge our customers. Additionally, legal obligations exist for certain of our onshore right-of-way agreements due to requirements or landowner options to compel us to remove the pipe at final abandonment. Sufficient data exists with certain onshore pipeline systems to reasonably estimate the cost of abandoning or retiring a pipeline system. However, in some cases, there is insufficient information to reasonably determine the timing and/or method of settlement for purposes of estimating the fair value of the ARO. In these cases, the ARO cost is considered indeterminate because there is no data or information that can be derived from past practice, industry practice, management's experience or the asset's estimated economic life. The useful lives of most pipeline systems are primarily derived from available supply resources and ultimate consumption of those resources by end users. Variables can affect the remaining lives of the assets which preclude us from making a reasonable estimate of the ARO. Indeterminate ARO costs will be recognized in the period in which sufficient information exists to reasonably estimate potential settlement dates and methods.
                                                 
Commitments, contingencies and environmental liabilities

We expense or capitalize, as appropriate, expenditures for ongoing compliance with environmental regulations that relate to past or current operations. We expense amounts we incur from the remediation of existing environmental contamination caused by past operations that do not benefit future periods by preventing or eliminating future contamination. We record liabilities for environmental matters when assessments indicate that remediation efforts are probable and the costs can be reasonably estimated. Estimates of environmental liabilities are based on currently available facts, existing technology and presently enacted laws and regulation taking into consideration the likely effects of inflation and other factors. These amounts also take into account our prior experience in remediating contaminated sites, other companies' clean-up experience and data released by government organizations. Our estimates are subject to revision in future periods based on actual cost or new information. We evaluate recoveries from insurance coverage separately from the liability and, when recovery is probable, we record an asset separately from the associated liability in our consolidated financial statements.

We recognize liabilities for other commitments and contingencies when, after fully analyzing the available information, we determine it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. When a range of probable loss can be estimated, we accrue the most likely amount, or if no amount is more likely than another, we accrue the minimum of the range of probable loss. We expense legal costs associated with loss contingencies as such costs are incurred.

Noncontrolling interests

Noncontrolling interests represent the minority interest holders' proportionate share of the equity in certain of our consolidated subsidiaries and are adjusted for the minority interest holders' proportionate share of the subsidiaries' earnings or losses each period.

Revenue recognition

Our revenue is derived from the provision of gathering, processing, transportation, terminalling and storage services and the sale of commodities primarily to marketers and brokers, refiners and chemical manufacturers, utilities and power generation customers, industrial users and local distribution companies. Services revenue also includes revenues generated through operating lease arrangements.

Beginning on January 1, 2018, we account for revenue from contracts with customers in accordance with Topic 606. The unit of account in Topic 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided at a point in time or over a period of time. Topic 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied. See Note 2. Recent Accounting Pronouncements, for further discussion regarding our January 1, 2018 implementation of the new Revenue Recognition guidance.

Cost of sales

Cost of sales represent the cost of commodities purchased for resale or obtained in connection with certain of our customer revenue arrangements. These costs do not include an allocation of depreciation expense or direct operating costs.

Corporate expenses

Corporate expenses include compensation costs for executives and administrative personnel, professional service fees, rent expense and other general and administrative expenses and are recognized as incurred.

Operational balancing agreements and natural gas imbalances

To facilitate deliveries of natural gas and provide for operational flexibility, we have operational balancing agreements in place with other interconnecting pipelines. These agreements ensure that the volume of natural gas a shipper schedules for transportation between two interconnecting pipelines equals the volume actually delivered. If natural gas moves between pipelines in volumes that are more or less than the volumes the shipper previously scheduled, a natural gas imbalance is created. The imbalances are settled through periodic cash payments or repaid in-kind through future receipt or delivery of natural gas. Natural gas imbalances are recorded in Other current assets or Accrued expenses and other current liabilities in our Consolidated Balance Sheets at cost which approximates fair value.

Equity-based compensation

We award equity-based compensation to management, non-management employees and directors under our long-term incentive plans, which provide for the issuance of options, unit appreciation rights, restricted units, phantom units, other unit-based awards, unit awards or replacement awards, as well as tandem Distribution Equivalent Rights ("DERs"). Compensation expense is measured by the fair value of the award at the date of grant as determined by management. Compensation expense is recognized in Corporate expenses and Direct operating expenses in our Consolidated Statements of Operations over the requisite service period of each award.

Income taxes

The Partnership is not a taxable entity for U.S. federal income tax purposes or for the majority of states that impose an income tax. Taxes on our net income are generally borne by our unitholders through the allocation of taxable income. Prior to the disposition of Marine Products in July 2018 (as discussed in Note 5. Dispositions), we owned American Midstream Blackwater, LLC, which owned a subsidiary that had operations which were subject to both U.S. federal and state income taxes. We accounted for income taxes of that subsidiary using the asset and liability approach. If it was more than likely that a deferred tax asset would not be realized, a valuation allowance was recognized.

Margin tax expense results from the enactment of laws by the state of Texas that apply to entities organized as partnerships and is included in Income tax expense in our Consolidated Statements of Operations. The Texas margin tax is computed on the portion of our taxable margin which is apportioned to Texas.

Net income (loss) for financial statement purposes may differ significantly from taxable income (loss) allocable to unitholders as a result of differences between the financial reporting and income tax bases of our assets and liabilities and the taxable income allocation requirement under our Partnership Agreement. The aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each partner's tax attributes in us is not available.

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss) is comprised solely of adjustments related to the Partnership's postretirement benefit plan.

Limited partners' net income (loss) per unit

We compute earnings per unit using the two-class method. The two-class method requires that securities which meet the definition of a participating security should be considered in the computation of basic earnings per unit. Under the two-class method, earnings per unit is calculated as if all of the earnings for the period were distributed under the terms of the Partnership Agreement, regardless of whether the General Partner has discretion over the amount of distributions to be made in any particular period, whether those earnings would actually be distributed during a particular period from an economic or practical perspective or whether the General Partner has other legal or contractual limitations on its ability to pay distributions that would prevent it from distributing all of the earnings for a particular period.

The two-class method does not impact our overall net income or other financial results; we make distributions on the basis of available cash and not earnings.  However, if a distribution exceeds the Minimum Quarterly Distribution it will have the impact of reducing net income per limited partner unit. This result occurs as a larger portion of the excess would be allocated to the incentive distribution rights of the General Partner. In periods in which our aggregate net income does not exceed our aggregate distributions for such period, the two-class method does not have any impact on our calculation of earnings per limited partner unit. As our preferred units participate in distributions to our common unitholders, in periods in which our aggregate net income exceeds our aggregate distributions for such period, the two-class method will have the impact of reducing net income per limited partner unit.
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New Accounting Pronouncements
12 Months Ended
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Accounting Policies [Abstract]  
New Accounting Pronouncements
New Accounting Pronouncements

Standards Adopted in 2018

Revenue from Contracts with Customers (Topic 606) - In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a new standard related to revenue recognition which supersedes most of the existing revenue recognition requirements in GAAP and requires entities to recognize revenue at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. It also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.
The FASB has issued several amendments to the standard since its issuance, including clarification on accounting for licenses of intellectual property, identifying performance obligations, reporting gross versus net revenue and narrow-scope revisions and practical expedients.

We adopted the new standard on January 1, 2018 (the “initial application” date):
using the modified retrospective application, with no restatement of the comparative periods presented and a cumulative effect adjustment to retained earnings as of the date of adoption, and
disclosing the impact of the new standard in our consolidated financial statements included in this 2018 Form 10-K.

Our revenue is derived from the provision of gathering, processing, transportation, terminalling and storage services and the sale of commodities primarily to marketers and brokers, refiners and chemical manufacturers, utilities and power generation customers, industrial users and local distribution companies. Beginning on January 1, 2018, we account for revenue from contracts with customers in accordance with Topic 606. The unit of account in Topic 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided at a point in time or over a period of time. Topic 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Commodity Sales - For the majority of our commodity sales contracts: (i) each unit of product is a separate performance obligation, since our promise is to sell multiple distinct units of product at a point in time, (ii) the transaction price principally consists of variable consideration, which is determinable on commodity index prices for the volume of the product sold to the customer that month and (iii) the transaction price is allocated to each performance obligation based on the product’s standalone selling price. Revenues from sales of commodities are recognized at the point in time when control of the commodity transfers to the customer, which generally occurs upon delivery of the product to the customer or its designee. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales, month-to-month contracts and multi-year agreements.
In our Liquid Pipelines and Services segment, we enter into purchase and sale contracts as well as buy/sell contracts with counterparties, under which we gather and transport different types of crude oil and eventually sell the crude oil to either the same counterparty or different counterparties. For each of these arrangements, the Partnership assesses if control of the underlying commodity volumes transfers to the Partnership. Generally, the Partnership is unable to direct the use of the commodity volumes it purchases from the supplier because the Partnership is contractually required to redeliver an equivalent volume of the commodity back to the supplier or to a specified customer, therefore these arrangements are recorded on a net basis.
Occasionally, we enter into crude oil inventory exchange arrangements with the same counterparty where the purchase and sale of inventory are considered in contemplation of each other. These types of arrangements are accounted for as inventory exchanges and are recorded on a net basis.
Services - The Partnership provides gathering, processing, transportation, terminalling and storage services pursuant to a variety of contracts. Generally, for the majority of these contracts: (i) our promise is to transfer (or stand ready to transfer) a series of distinct integrated services over a period of time, which is a single performance obligation and (ii) the transaction price includes fixed or variable consideration, or both fixed and variable consideration. The amount of consideration is determinable at contract inception or at each month’s end based on our right to invoice at month end for the value of services provided to the customer in that month.
Revenue is recognized over the service period specified in the contract as the services are rendered using a time-based (passage of time) or units-based (units of service transferred) method for measuring provision of the services. Progress towards satisfying our performance obligation is based on the firm or interruptible nature of the promised service and the terms and conditions of the contract (such as contracts with or without makeup rights). Payment is generally received from the customer in the month of service or the month following the service. Contracts with customers generally are a combination of month-to-month and multi-year agreements.
Firm Services - Firm services are services that are promised to be available to the customer at all times during the term of the contract with limited exceptions. These agreements require customers to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements are entered into with customers to economically support the return on our capital expenditure necessary to construct the related asset. Our firm service contracts are typically structured with take-or-pay or minimum volume provisions, which specify minimum service quantities a customer will pay for even if it chooses not to receive or use them in the specified service period (referred to as “deficiency quantities”).
Under firm service contracts, we record a receivable from the customer in the period that services are provided or when the transaction occurs, including amounts for deficiency quantities from customers associated with minimum volume commitments. If a customer has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the customer’s ability to utilize the make-up right is remote.
Interruptible Services - Interruptible services are services provided to the extent that we have available capacity. Generally, we do not have an obligation to perform these services until we accept a customer’s periodic request for service. For the majority of these contracts, the customer will pay only for the actual quantities of services it chooses to receive or use and we typically recognize the transaction price as revenue as those units of service are transferred to the customer in the specified service period.
Gathering and Processing - Our Gas Gathering and Processing Services segment provides “wellhead-to-market” services to producers of natural gas and NGLs, which include transporting raw natural gas from various receipt points through gathering systems, treating the raw natural gas, processing raw natural gas to separate the NGLs from the natural gas, fractionating NGLs and selling or delivering pipeline-quality natural gas and NGLs to various markets and pipeline systems. Services can be firm if subject to a minimum volume commitment or acreage dedication or interruptible when offered on an as requested, non-guaranteed basis. Revenue for fee-based gathering and processing services is valued based on the rate in effect for the month of service and is recognized in the month of service based on the volumes of natural gas we gather, process and fractionate. Under these arrangements, we may take control of: (i) none of the commodities we sell (i.e., residue gas or NGLs), (ii) a portion of the commodities we sell or (iii) all of the commodities we sell.
In those instances where we purchase and obtain control of the entire natural gas stream in our producer arrangements, we have determined these are contracts with suppliers rather than contracts with customers and therefore, these arrangements are not included in the scope of Topic 606. These supplier arrangements are subject to updated guidance in Accounting Standards Codification (“ASC”) 705, Cost of Sales and Services, whereby any embedded fees within such contracts, which historically have been reported as services revenue, are now reported as a reduction to cost of sales upon adoption of Topic 606.
In those instances where we remit all of the cash proceeds received from third parties for selling the extracted commodities to the producer, less the fees attributable to these arrangements, we have determined that the producer has control over these commodities. Upon adoption of Topic 606, we eliminated recording both sales revenue (natural gas and products) and cost of sales amounts and now only record fees attributable to these arrangements as service revenues.
In other instances where we do not obtain control of the extracted commodities we sell, we are acting as an agent for the producer and, upon adoption of Topic 606, we have continued to recognize services revenue for the net amount of consideration we retain in exchange for our service.
The Partnership may charge additional service fees to customers for a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold) due to the significant upfront capital investment, and these fees are initially deferred and recognized to revenue over the expected period of customer benefit, generally the lesser of the expected contract term or the life of the related properties.
Transportation - Our transportation operations generally consist of fee-based activities associated with transporting crude oil, natural gas and NGL on pipelines, gathering systems and trucks. Revenues from pipeline tariffs and fees are associated with the transportation at a published tariff, as well as revenues associated with agreements for committed capacity on various assets. We primarily recognize pipeline tariff and fee revenues over time based on the volumes delivered and invoiced. The majority of our pipeline tariff and fee revenues are based on actual volumes and rates.
As is common in the pipeline transportation industry, our tariffs incorporate a loss allowance factor. The intent of the allowance in arrangements for the transportation of natural gas is to approximate the natural shrink that occurs when transporting gas. For crude oil transportation arrangements, loss allowance provisions are immaterial to the Partnership. In the event the Partnership retains excess natural gas and crude oil and subsequently sells the commodity to a third party, the sale is recorded at that point in time as a commodity sale.
Terminalling and Storage - In our Terminalling Services segment, we generally received fee-based compensation on guaranteed firm storage contracts, throughput fees charged to our customers when their products are either received or disbursed and other operational charges associated with ancillary services provided to our customers, such as excess throughput and steam heating. Storage fees resulting from short-term and long-term contracts are typically recognized in revenue ratably over the term of the contract regardless of the actual storage capacity utilized. Substantially all of our Terminalling Services segment assets were sold in 2018, see Note 5. Dispositions for more information.
Adoption of the new revenue standard resulted in changes to the timing of revenue recognition and in the reclassification between financial statement line items. See Note 3. Revenue Recognition, for further discussion.
Statement of Cash Flows - In August 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides specific guidance on cash flow classification issues to reduce diversity in practice. In connection with the January 1, 2018 retrospective adoption of this ASU, for the year ended December 31, 2017, we reclassified $2.8 million in distributions received from unconsolidated affiliates from operating cash inflows to investing cash inflows and reclassified $2.5 million of transaction costs associated with the disposal of our Propane Business from an investing cash outflow to an operating cash outflow in our Consolidated Statement of Cash Flows. Transaction costs for the year ended December 31, 2016 were not material.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires amounts described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. A reconciliation between the balance sheet and the statement of cash flows must be disclosed when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash and restricted cash equivalents.

We retrospectively adopted ASU 2016-18 as of January 1, 2018. For the year ended December 31, 2017, cash flows from investing activities were adjusted to remove the impact of $298.2 million in restricted cash inflows and for December 31, 2016, cash flows from investing activities were adjusted to remove the impact of $318.5 million in restricted cash outflows.

Stock Compensation - In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 was issued with the intent to clarify the scope of modification accounting and when it should be applied to a change to the terms or conditions of a share-based payment award. Under the new guidance, modification accounting is required for all changes to share-based payment awards, unless all the following conditions are met: (i) there is no change to the fair value of the award, (ii) the vesting conditions have not changed and (iii) the classification of the award as an equity instrument or a debt instrument has not changed. We adopted ASU 2017-09 on its effective date of January 1, 2018, and the adoption did not have a material impact on our consolidated financial statements.

Standards Not Yet Adopted

Leases (Topic 842) - In February 2016, the FASB issued ASU No. 2016-02 (“Topic 842”) Leases, which supersedes the lease recognition requirements in ASC 840, Leases. Under the new guidance, for leases with a term longer than 12 months, a lessee should recognize a lease liability and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term. Topic 842 retains a classification distinction between finance leases and operating leases, with the classification affecting the pattern of expense recognition in the income statement. This ASU also requires enhanced disclosures.
In 2018, the FASB issued ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 and ASU No. 2018-11, Targeted Improvements. Under these updates, optional transition practical expedients are available (1) whereby existing or expired land easements that were not previously accounted for as leases under Topic 840 are not required to be evaluated under Topic 842 and (2) lease and associated non-lease components are not required to be separated within lessor arrangements if certain criteria are met. The FASB also issued ASUs 2018-10 and 2018-20, Codification Improvements to Topic 842 and Narrow Scope Improvements for Lessors, respectively, to alleviate unintended consequences from applying Topic 842. The amendments do not make substantive changes to the core provisions or principles of Topic 842 and are not expected to significantly impact our implementation process.
We adopted the new standard on its effective date, January 1, 2019, using the modified retrospective application. We have also elected the package of practical expedients permitted under the transition guidance within Topic 842 which, among other things, allows us to carry forward the historical lease classification. As such, we did not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. We did not elect the hindsight practical expedient which permits entities to use hindsight in determining the lease term and assessing impairment of ROU assets.
Additionally, we elected certain practical expedients on an ongoing basis, including the practical expedient for short-term leases pursuant to which a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a lease liability and ROU asset for leases (1) with a term of 12 months or less and (2) that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Instead, we will recognize the lease payments for short-term leases within profit and loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred.
We selected a third-party consulting firm to assist us with the adoption of the new guidance. We are implementing specialized software and developing policies based on reviews of existing arrangements. We intend to complete any required changes to our systems, software applications and processes, including training personnel and updating our internal controls, during the first quarter 2019.
While we continue to evaluate certain aspects of Topic 842, the application will have an effect on our consolidated financial statements from a lessee perspective, with the most significant effects relating to (1) the recognition of new ROU assets and lease liabilities on our balance sheet and (2) significant new disclosures about our leasing activities. We believe substantially all leases where we are a lessee will continue to be classified as operating leases under Topic 842. We do not expect Topic 842 to have a material effect on our consolidated financial statements from a lessor perspective.
On adoption, we expect to recognize additional lease liabilities ranging from $28 million to $32 million, with corresponding ROU assets of approximately the same amount. This estimate could change as the Partnership continues to finalize the implementation. Management does not expect a material impact to the Partnership’s Consolidated Statements of Operations or Cash Flows.
Financial Instruments - In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance will become effective for interim and annual periods beginning after December 15, 2019. We expect to adopt ASU 2016-13 on January 1, 2020, and we are currently evaluating the effect that adopting this guidance will have on our consolidated financial position, results of operations and cash flows.

Fair Value Measurement - In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). This guidance eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies certain disclosure requirements. The FASB developed the amendments to Topic 820 as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to consolidated financial statements by focusing on requirements that clearly communicate the most important information to users of the consolidated financial statements. This guidance will become effective for interim and annual periods beginning after December 15, 2019. We expect to adopt ASU 2018-13 on January 1, 2020, and we are currently evaluating the impact, if any, that adopting this guidance will have on our disclosures.

Cloud Computing Arrangements - In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ("ASU 2018-15"). The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs of a hosting arrangement that is a service contract will be expensed over the term of the hosting arrangement. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted, including adoption in any interim period. The amendments can be applied either retrospectively or prospectively to all implementation costs incurred after the adoption date. We expect to adopt ASU 2018-15 on January 1, 2020, and we are currently evaluating the impact, if any, that adopting this guidance will have on our accounting and disclosures.
v3.19.1
Revenue Recognition
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Revenue Recognition

Effect of ASC Topic 606 Adoption – The effect of adopting Topic 606, due to the change in method to measure project progress, as discussed in Note 2. Recent Accounting Pronouncements, is as follows (in thousands):

 
 
Year Ended December 31, 2018
 
 
As Reported
 
Adjustments
 
Amounts Without Adoption of Topic 606
Revenue
 
 
 
 
 
 
Commodity sales
 
$
610,042

 
$
34,093

 
$
644,135

Services
 
193,276

 
(31,067
)
 
162,209

Operating expenses
 
 
 
 
 
 
Costs of sales
 
592,040

 
18,362

 
610,402

Direct operating expenses
 
87,677

 
(12,985
)
 
74,692

 
 
 
 
 
 
 
Operating income
 
25,268

 
(2,352
)
 
22,916

 
 
 
 
 
 
 
Net loss attributable to the Partnership
 
(7,764
)
 
(2,352
)
 
(10,116
)
 
 
 
 
 
 
 
General Partner’s interest in net loss
 
(101
)
 
(31
)
 
(132
)
Limited Partners’ interest in net loss
 
(7,663
)
 
(2,321
)
 
(9,984
)

 
 
As of December 31, 2018
 
 
As Reported
 
Adjustments
 
Amounts Without Adoption of Topic 606
Assets
 
 
 
 
 
 
Accounts receivable, net
 
$
76,632

 
$
(61,182
)
 
$
15,450

Unbilled revenue
 

 
61,182

 
61,182

Other current assets
 
27,422

 
(252
)
 
27,170

Other assets
 
17,403

 
(8,586
)
 
8,817

Liabilities
 
 
 
 
 


Other long-term liabilities
 
18,491

 
(14,431
)
 
4,060



The majority of the adjustments in the table above were associated with our natural gas gathering and processing, transportation pipeline and terminalling revenues. The magnitude of the future effect of implementing Topic 606 is dependent on future customer volumes, subject to the impacted contracts and commodity prices for those volumes.

Disaggregated Revenue

The following table presents our segment revenues from contracts with customers disaggregated by type of activity (in thousands):
 
Year Ended December 31, 2018
 
Gas Gathering and Processing Services
 
Liquid Pipelines and Services
 
Natural Gas Transportation Services
 
Offshore Pipelines and Services
 
Terminalling Services
 
Total
Commodity sales:
 
 
 
 
 
 
 
 
 
 
 
     Natural gas
$
10,068

 
$

 
$
25,608

 
$
9,946

 
$

 
$
45,622

     NGLs
76,631

 

 

 
143

 

 
76,774

     Condensate
43,823

 

 

 
688

 

 
44,511

     Crude oil

 
428,977

 

 

 

 
428,977

     Other sales (1)
953

 

 
9

 
109

 
13,087

 
14,158

 
131,475

 
428,977

 
25,617

 
10,886

 
13,087

 
610,042

Services:
 
 
 
 
 
 
 
 
 
 
 
     Gathering and processing
20,178

 

 

 
1,263

 

 
21,441

     Transportation
1,872

 
17,243

 
33,626

 
37,769

 

 
90,510

     Terminalling and storage

 
3,360

 

 

 
30,907

 
34,267

     Other services(2)
2,820

 
935

 
420

 
21,212

 
1,369

 
26,756

 
24,870

 
21,538

 
34,046

 
60,244

 
32,276

 
172,974

 
 
 
 
 
 
 
 
 
 
 
 
Revenues from contracts with customers
$
156,345

 
$
450,515

 
$
59,663

 
$
71,130

 
$
45,363

 
$
783,016

_______________________
(1)  
Other commodity sales for our Terminalling Services segment include sales of Refined Products and Marine Products. See Note 5. Dispositions.
(2) 
Other services in our Offshore Pipelines and Services segment include asset management services.  

Other Items in Revenue

The following table presents the reconciliation of our revenues from contracts with customers to segment revenues and total revenues as disclosed in our Consolidated Statement of Operations (in thousands):

 
Year Ended December 31, 2018
 
Gas Gathering and Processing Services
 
Liquid Pipelines and Services
 
Natural Gas Transportation Services
 
Offshore Pipelines and Services
 
Terminalling Services
 
Total
Revenues from contracts with customers
$
156,345

 
$
450,515

 
$
59,663

 
$
71,130

 
$
45,363

 
$
783,016

Revenues generated through operating lease arrangements
19,252

 

 

 
1,050

 

 
20,302

Gains on commodity derivatives, net
311


1,725

 

 

 

 
2,036

     Total revenues of reportable segments
$
175,908

 
$
452,240

 
$
59,663

 
$
72,180

 
$
45,363

 
$
805,354


    
We may utilize derivative instruments in connection with contracts with customers. We purchase and take title to a portion of the NGLs and crude oil that we sell, which may expose us to changes in the price of these products in our sales markets. We do not take title to the natural gas we transport and therefore have no direct commodity price exposure to natural gas. Derivative gains or losses are not included as a component of revenue from contracts with customers but are included in other items in revenue.

Contract Balances

Our contract assets and liabilities primarily relate to contracts where allocations of the transaction prices result in differences to the pattern and timing of revenue recognition as compared to contractual billings. Where payments are received in advance of recognition as revenue, contract liabilities are created. Where we have earned revenue and our right to invoice the customer is conditioned on something other than the passage of time, contract assets are created.

The following table presents the change in the contract assets and liability balances during the year ended December 31, 2018 (in thousands):
 
Contract Assets
 
Contract Liabilities
Balance at December 31, 2017
$

 
$
2,136

Topic 606 implementation
2,555

 
13,257

Amounts recognized as revenue

 
(2,602
)
Additions
6,283

 
2,823

Balances at December 31, 2018
$
8,838

 
$
15,614

 
 
 
 
Current
$
252

 
$
409

Non-current
8,586

 
15,205

Balances at December 31, 2018
$
8,838

 
$
15,614



As of December 31, 2018, in our Consolidated Balance Sheets, the current portion of contract assets is included as a component of Other current assets and the non-current portion is included in Other assets; the current portion of contract liabilities is included in Accrued expenses and other current liabilities and the non-current portion is included in Other long-term liabilities.

Remaining Performance Obligations

The Partnership applies the practical expedients in Topic 606 and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. The following table as of December 31, 2018, represents only revenue expected to be recognized from contracts where the price and quantity of the product or service are fixed (in thousands):
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
 
Total
Gathering and processing based on minimum volume commitments
$
12,677

 
$
12,677

 
$
12,654

 
$
12,401

 
$
12,401

 
$
5,943

 
$
68,753

Transportation agreements
21,379

 
20,436

 
19,933

 
19,915

 
19,946

 
179,204

 
280,813

Other
1,648

 
1,560

 

 

 

 

 
3,208

Total
$
35,704

 
$
34,673

 
$
32,587

 
$
32,316

 
$
32,347

 
$
185,147

 
$
352,774



Due to the application of the practical expedients, the table above represents only a portion of the Partnership’s expected future consolidated revenues and it is not necessarily indicative of the expected trend in total revenues for the Partnership. Certain contracts have not been presented in the table above due to the term being one year or less and due to variability in the amount of performance obligation remaining, variability in the timing of recognition or variability in consideration. Acreage dedications do require us to perform future services but do not contain a minimum level of services and are therefore excluded from this presentation. Long-term supply and logistics arrangements contain variable timing, volumes and/or consideration and are also excluded from this presentation.
v3.19.1
Acquisitions
12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Acquisitions
Acquisitions

2018 Acquisition

Southcross Energy Partners, L.P. Merger Termination Fee

On October 31, 2017, we, our General Partner, our wholly owned subsidiary, Cherokee Merger Sub LLC, Southcross Energy Partners, L.P. (“SXE”) and Southcross Energy Partners GP, LLC, entered into an Agreement and Plan of Merger (the “SXE Merger Agreement”), and we, our General Partner and Southcross Holdings LP (“Holdings LP”) entered in to a Contribution Agreement (“Contribution Agreement”) for total consideration of $818 million. Under the Merger Agreement and the Contribution Agreement, we would have acquired SXE and substantially all the current subsidiaries of Holdings LP. The SXE Merger Agreement and the Contribution Agreement originally provided for an outside closing date of June 1, 2018. On June 1, 2018 the parties to the Merger Agreement and the Contribution Agreement agreed to extend such outside closing date to June 15, 2018 (the “Outside Closing Date”).

On July 29, 2018, following the expiration of the Outside Closing Date, we received notice of termination of the SXE Merger Agreement from SXE and notice of termination of the Contribution Agreement from Holdings LP. Pursuant to the terms of the Contribution Agreement, we were required to pay Holdings LP a $17 million termination fee. The termination fee was paid in August 2018 and is presented as Termination fee in the Consolidated Statement of Operations.

2017 Acquisitions

JP Energy Partners LP

On March 8, 2017, the Partnership completed the acquisition of JPE, an entity controlled by ArcLight affiliates, in a unit-for-unit exchange. In connection with the transaction, each JPE common or subordinated unit held by investors not affiliated with ArcLight was converted into the right to receive 0.5775 of a Partnership common unit, and each JPE common or subordinated unit held by ArcLight affiliates was converted into the right to receive 0.5225 of a Partnership common unit. The Partnership issued a total of 20.2 million of its common units to complete the acquisition, including 9.8 million common units to ArcLight affiliates.

Viosca Knoll Gathering System

On June 2, 2017, we acquired 100% of VKGS from Genesis Energy, L.P. for total consideration of approximately $32.0 million in cash and have accounted for this acquisition as a business combination. VKGS serves producing fields located in the Main Pass, Mississippi Canyon and Viosca Knoll areas of the Gulf of Mexico and connects to several major delivery pipelines including the Partnership’s High Point and Destin pipelines. VKGS will provide greater East-West Gulf connectivity, through the connection of the High Point Gas Transmission system and the Destin Pipeline, both operated by us. The VKGS acquisition added to our Offshore Pipelines and Services segment and was funded with borrowings under our Original Credit Agreement (as defined in Note 14. Debt Obligations).

The following table presents our aggregated allocation of the purchase price based on fair values of assets and liabilities acquired at the date of acquisition, June 2, 2017 (in thousands):
 
Purchase Price Allocation
Property, plant and equipment:
 
     Pipelines and right-of-way
$
13,433

     Equipment
18,853

Total property, plant and equipment
32,286

Liability
(286
)
Total cash consideration
$
32,000



The pro forma effect of our business acquisition of VKGS was immaterial to our Consolidated Statement of Operations for the year ended December 31, 2017 and the comparative periods and therefore has not been separately disclosed.

Panther

On August 8, 2017, the Partnership acquired 100% of the interest in Panther Offshore Gathering Systems, LLC, Panther Pipeline, LLC and Panther Operating Company. LLC from Panther for approximately $60.9 million. The consideration included $39.1 million cash, funded from borrowings under our Original Credit Agreement, and common units representing limited partner interests in the Partnership, valued at $12.5 million based on unit value as of the acquisition date and approximately $9.2 million in assumed liabilities and working capital. Panther owns and operates more than 1,000 miles of oil and gas pipelines, primarily in Texas and Louisiana offshore state and federal waters. The underlying acquired assets are highly complementary to the Partnership’s core Gulf of Mexico assets as a substantial portion of Panther’s cash flows are generated by our joint ventures.

As part of the purchase of POGS, we acquired the outstanding interests in one of our equity investments, MPOG, as well as the remaining equity interest in our consolidated subsidiary, AmPan. As such, the Partnership now owns 100% of MPOG and AmPan. We determined that the acquisition of the remaining interest in MPOG on August 8, 2017 resulted in a change in control and MPOG has been consolidated from the acquisition date. The effect was the Partnership’s previously held equity interest in MPOG was remeasured to fair value and the excess (approximately $36.0 million) of fair value over historical carrying value was recognized as a gain in Other income, net in our Consolidated Statement of Operations for the year ended December 31, 2017.

For AmPan, which has historically been consolidated by the Partnership, the acquisition of Panther’s remaining interest resulted in the acquisition of a noncontrolling interest. Accordingly, the excess of the fair value of the acquired interest of $28.6 million over the carrying value of the noncontrolling interest (approximately $4.6 million) has been reported as a reduction to general partner and limited partner interests. PPL owns a 50% undivided ownership interest in the Matagorda and the Brazoria County Gas systems which will be proportionally consolidated from the acquisition date. POC operates pipeline assets on behalf of both third parties and affiliates of the Partnership for a fee and will be fully consolidated by the Partnership.

The following table presents the aggregated allocation of the purchase price based on estimated fair values of Panther’s assets acquired and liabilities assumed at the date of acquisition, August 8, 2017 (in thousands):

 
Purchase Price Allocation
Fair value of acquired noncontrolling interest
$
28,597

Property, plant and equipment
19,497

Intangibles (customer relationships)
5,984

Net working capital, net of cash acquired
2,095

Goodwill
4,692

     Total
$
60,865



The pro forma effect of our business acquisition of Panther entities was immaterial to our Consolidated Statements of Operations for the year ended December 31, 2017 and the comparative periods and therefore has not been separately disclosed.

Delta House Investment

On September 29, 2017, we acquired an additional 15.5% equity interest in Class A units of Delta House from affiliates of ArcLight for total cash consideration of approximately $125.4 million.  As our 15.5% interest in Delta House was previously owned directly by ArcLight, we have accounted for our investment at our affiliate's carry-over basis resulting in $49.8 million recorded in Investments in unconsolidated affiliates in our Consolidated Balance Sheets and as an investing activity within the related Consolidated Statement of Cash Flows. The amount by which the total consideration exceeded the carry-over basis was $75.6 million and was recorded as a distribution to our general partner within the Consolidated Statement of Changes in Equity, Partners’ Capital and Noncontrolling Interests and a financing activity in the Consolidated Statement of Cash Flows.

As of December 31, 2018, the Partnership and ArcLight indirectly own a 35.7% and 23.3% interest, respectively, in Delta House. Such 35.7% interest includes a 35.7% interest in Delta House FPS LLC (“FPS”), which entitles us to receive 100% of the distributions from FPS until a certain payout threshold is met. Once the payout threshold is met, which is projected to occur in the second half of 2020, approximately 7% of the distributions from FPS will be paid to the Class B membership interests in FPS.

For the year ended December 31, 2017, the Partnership recorded $41.3 million in equity earnings from Delta House. The Partnership also received cash distributions of $43.7 million during the year. The excess of the cash distributions received over the earnings recorded from Delta House is classified as a return of capital within cash flows from investing activities in our Consolidated Statements of Cash Flows.

Our interest in Delta House is accounted for as an equity method investment in the consolidated financial statements.

Emerald Transactions

On October 27, 2017, American Midstream Emerald, LLC, a wholly-owned subsidiary of the Partnership, entered into a Purchase and Sale Agreement with Emerald Midstream, LLC, an ArcLight affiliate, to purchase an additional 17.0% equity interest in Destin for total consideration of $30.0 million.  As our 17% interest in Destin was previously owned directly by ArcLight, we have accounted for our investment at our affiliate's carry-over basis resulting in $30.3 million recorded in Investments in unconsolidated affiliates in our Consolidated Balance Sheets and $30.0 million as an investing activity in our Consolidated Statement of Cash Flows. The amount by which the total consideration was below the carry-over basis was $0.3 million and was recorded as a contribution from our general partner within the Consolidated Statement of Changes in Equity, Partners’ Capital and Noncontrolling Interests and a non-cash financing activity in Note 22. Supplemental Cash flow information for the year ended December 31, 2017. With the acquisition, the Partnership now owns a 66.7% interest in Destin.

As Destin continues to be a VIE, the Partnership applied the guidance in ASC 810 - Consolidation to determine if either member has a controlling financial interest and if the Partnership is the primary beneficiary. As a result of our analysis, neither party has a controlling financial interest nor is the Partnership the primary beneficiary, and so the Partnership should not consolidate Destin. As it is not appropriate for the Partnership to consolidate Destin under the VIE model, we revisited the analysis in ASC 323, Investments - Equity Method and Joint Ventures, to determine the appropriate accounting for our interests and concluded that the Partnership should continue to account for Destin using the equity method of accounting as it continues to have the ability to exert significant influence over Destin's operations.

Acquisition of Trans-Union pipeline
On November 3, 2017, we completed the acquisition of 100% of the equity interests in Trans-Union Interstate Pipeline, LP (“Trans-Union”) from affiliates of ArcLight, for a total consideration of approximately $49.4 million. The consideration consisted of approximately $16.9 million in cash funded from borrowings under our Original Credit Agreement and the assumption of the remaining balance of $32.5 million non-recourse debt with 3.97% interest, quarterly payments and maturity date on December 31, 2032. See Note 14. Debt Obligations for more information. Trans-Union owns a 42-mile, 30-inch diameter high-pressure FERC-regulated natural gas interstate pipeline with 546,000 MMbtu/day of maximum capacity. As a result, the results of these operations are reported in our Natural Gas Transportation Services segment. See Note 23. Reportable Segments. As the transaction represents an asset acquisition among entities under common control, as defined by ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, we did not recast our historical consolidated financial statements to reflect the accounts of Trans-Union from the date ArcLight obtained control. Instead, we recorded the acquired assets at carry over basis or ArcLight's historical cost.
v3.19.1
Dispositions
12 Months Ended
Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Dispositions
Dispositions

In the second quarter of 2017, we began executing a capital optimization strategy to simplify our business and redeploy capital from non-core assets toward higher return and growth opportunities. In addition to the sale of our Propane Marketing Services discussed below under Discontinued Operations, we determined that our terminalling assets were not integral to our core strategies, and therefore, we began contemplating their disposition. We began actively marketing our Terminalling Services segment assets to use the proceeds to fund future acquisitions and growth projects.
On June 16, 2018, we entered into a definitive agreement for the sale of our marine liquids terminals (the “Marine Products”) to institutional investors. The divestiture of the Marine Products, including the Harvey and Westwego terminals located in the Port of New Orleans, Louisiana and the Brunswick terminal located in the Port of Brunswick, Georgia, is a continuation of the Partnership's previously announced non-core asset divestiture program. On July 31, 2018, we completed the sale of Marine Products. Net proceeds from this disposition were $208.6 million, exclusive of $5.7 million in advisory fees and other costs and were used to pay down our Credit Agreement (as defined in Note 14. Debt Obligations). We recognized a $99.1 million gain, which is reflected in the (Gain) loss on sale of assets, net in our Consolidated Statements of Operations. The tax expense associated with the gain was approximately $29.8 million and is included in Income tax expense in the Consolidated Statement of Operations. The disposition of Marine Products did not meet the criteria for discontinued operations, as we believe the disposal does not represent a strategic shift that will have a major effect on our operations or financial results.

On February 16, 2018, we entered into a definitive agreement for the sale of our refined products terminals (the “Refined Products”) to DKGP Energy Terminals LLC (“DKGP”). On August 1, 2018, we and DKGP announced the termination of the agreement.

Subsequent to the termination of the DKGP agreement, on November 15, 2018, we entered into a definitive agreement for the sale our Refined Products to Sunoco LLC for approximately $125 million in cash, subject to working capital adjustments. On December 20, 2018, we completed the sale of Refined Products. Net proceeds from this disposition were $125 million, exclusive of $3.7 million in advisory fees and other costs. The proceeds were used to pay-down outstanding borrowings under our Credit Agreement (as defined in Note 14. Debt Obligations). We recognized a $3.5 million loss, which is reflected in the (Gain) loss on sale of assets, net in our Consolidated Statements of Operations. The disposition of Refined Products did not meet the criteria for discontinued operations, as we believe the disposal does not represent a strategic shift that will have a major effect on our operations or financial results.

Discontinued Operations

On September 1, 2017, we completed the disposition of the Propane Business pursuant to the Membership Interest Purchase Agreement dated July 21, 2017, between AMID Merger LP, a wholly owned subsidiary of the Partnership, and SHV Energy N.V. Through the transaction, we divested Pinnacle Propane’s 40 service locations; Pinnacle Propane Express’ cylinder exchange business and related logistic assets; and the Alliant Gas utility system. Prior to the sale, we moved the trucking business from the Propane Business segment to the Liquid Pipelines and Services segment. With the disposition of the Propane Business, we eliminated the Propane Marketing Services segment.

In connection with the transaction, we received approximately $170.0 million in cash, net of customary closing adjustments and exclusive of $2.5 million of transaction costs. We recorded a gain of $47.4 million which is included in (Gains) losses on sale of assets and business line item in our Consolidated Statement of Cash Flows for the year ended December 31, 2017. The results of our Propane Business have been reported as discontinued operations in our Consolidated Statements of Operations.

The following tables summarize the financial information related to the Propane Business for the corresponding years (in thousands).

Consolidated Statement of Operations
 
December 31,
 
 
2017
 
2016
Total revenues
 
$
87,520

 
$
137,896

Costs and Expenses
 
 
 
 
Costs of sales
 
38,961

 
49,672

Direct operating expenses
 
35,177

 
51,828

Corporate expenses
 
7,174

 
9,992

Impairment of goodwill
 

 
12,802

Depreciation, amortization and accretion
 
9,823

 
15,936

(Gain) loss on sale of assets, net
 
(55
)
 
2,182

  Total expenses
 
91,080

 
142,412

 
 
 
 
 
Operating loss
 
(3,560
)
 
(4,516
)
 
 
 
 
 
Other income (expense)
 
 
 
 
Interest expense
 
(36
)
 
(36
)
Other income
 
316

 
374

Loss from discontinued operations before income tax expense
 
(3,280
)
 
(4,178
)
 
 
 
 
 
Income tax (expense) benefit
 
(59
)
 
2

Net loss from discontinued operations
 
(3,339
)
 
(4,176
)
Partnership's gain from the sale of discontinued operations
 
47,434

 

Partnership's income (loss) from discontinued operations, including gain on sale
 
$
44,095

 
$
(4,176
)


The following table summarizes other selected financial information related to the Propane Business (in thousands):
 
Year ended December 31,
 
2017
 
2016
Depreciation
$
8,074

 
$
13,108

Amortization
1,749

 
2,828

Capital expenditures
3,143

 
6,549

 
 
 
 
Other operating non-cash items
 
 
 
      Impairment of goodwill

 
12,802

      (Gain) loss on sale of assets
(55
)
 
2,182

      Unrealized (gain) loss on derivative contracts, net

 
(1,072
)


Mid-Continent
On February 1, 2016, we sold certain trucking and marketing assets in the Mid-Continent area (the “Mid-Continent Business”) to JP Development for $9.7 million in cash. We recognized a loss on the disposal of approximately $12.9 million during the year ended December 31, 2015, which primarily related to goodwill and long-lived asset impairment charges. Prior to the classification as discontinued operations, we reported the Mid-Continent Business in our Liquid Pipelines and Services segment.

Financial information for the Mid-Continent Business which is included in Income (loss) from discontinued operations, net of tax in the Consolidated Statement of Operations is summarized below (in thousands):
 
 
Year Ended December 31, 2016
Revenues
 
 
  Total revenues
 
$
11,495

Costs and Expenses
 
 
Costs of sales
 
11,687

Direct operating expenses
 
203

Depreciation, amortization and accretion
 
211

Gain on sale of assets, net
 
(114
)
  Total expenses
 
11,987

 
 
 
Operating loss
 
(492
)
 
 
 
Other expense
 
(47
)
Loss from discontinued operations before income tax expense
 
(539
)
 
 
 
Income tax expense
 

Net loss from discontinued operations
 
$
(539
)
v3.19.1
Concentration of Credit Risk
12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Concentration of Credit Risk
Concentration of Credit Risk

Significant customers are defined as those who represent 10% of more of our consolidated revenue during the year. In 2018, we had two significant customers, Royal Dutch Shell ("Shell") and Occidental Petroleum Corporation ("Occidental"), which accounted for 27% and 19%, respectively, of our consolidated revenue. The revenue from Shell is reported in our Gas Gathering and Processing Services, Liquid Pipelines and Services, Offshore Pipelines and Services and Terminalling Services segments. The revenue from Occidental is reported in our Gas Gathering and Processing Services, Liquid Pipelines and Services and Terminalling Services segments.

In 2017, we had two significant customers, Occidental and Shell, which accounted for 23% and 13%, respectively, of our consolidated revenue. In 2016, we had two significant customers, Occidental and Plains All American Pipeline, L.P, which accounted for 21% and 13%, respectively, of our consolidated revenue.

We are party to various commercial netting agreements that allow us and contractual counterparties to net receivable and payable obligations. These agreements are customary, and the terms follow standard industry practice. In the opinion of management, these agreements reduce the overall counterparty risk exposure.
v3.19.1
Other Current Assets
12 Months Ended
Dec. 31, 2018
Other Current Assets [Abstract]  
Other Current Assets
Other Current Assets

Other current assets consist of the following (in thousands):
 
December 31,
 
2018
 
2017
Prepaid expenses
$
8,395

 
$
8,944

Current portion of deferred debt issuance costs(1)
5,433

 

Insurance receivables
649

 
1,741

Due from related parties
16

 
4,362

Other receivables
6,975

 
5,187

Risk management assets
4,768

 
3,186

Inventory
1,186

 
2,966

      Total other current assets
$
27,422

 
$
26,386


____________________________
(1) 
Related to our Credit Agreement. See Note 14. Debt Obligations for discussion of our debt obligations.
v3.19.1
Risk Management Activities
12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Risk Management Activities
Risk Management Activities

Commodity Derivatives

To limit the effect of commodity price changes and maintain our cash flow and the economics of our development plans, we enter into commodity derivative contracts from time to time. The terms of the contracts depend on various factors, including management's view of future commodity prices, economics on purchased assets and future financial commitments. This hedging program is designed to mitigate the effect of commodity price declines while allowing us to participate to some extent in commodity price increases. Management regularly monitors the commodity markets and our financial commitments to determine if, when, and at what level commodity hedging is appropriate in accordance with policies that are established by the Board.

To meet this objective, we use a combination of fixed price swaps, basis swaps and forward contracts. We enter into commodity contracts with multiple counterparties, and in some cases, may be required to post collateral with our counterparties in connection with our derivative positions. The counterparties are not required to post collateral with us in connection with their derivative positions. Netting agreements are in place that permit us to offset our commodity derivative asset and liability positions with our counterparties. At times, we may also terminate or unwind hedges or portions of hedges in order to meet cash flow objectives or when the expected future volumes do not support the level of hedges. Our forward contracts that qualify for the normal purchase normal sale exception are recognized when the underlying physical transaction is delivered. While these contracts are considered derivative financial instruments, they are not recorded at fair value, but on an accrual basis of accounting. If it is determined that a transaction no longer meets the exception, the fair value of the related contract is recorded in our Consolidated Balance Sheets and immediately recognized through earnings.

The following table summarizes the net notional volume buy (sell) of our outstanding commodity-related derivatives, excluding those derivatives that qualified for the normal purchase normal sale exception as of December 31, 2018 and 2017, none of which were designated as hedges for accounting purposes.
 
 
December 31, 2018
 
December 31, 2017
Commodity Swaps
 
Notional Volume
 
Maturity
 
Notional Volume
 
Maturity
Crude Oil Basis (barrels)
 
208,000
 
February 2019
 
 


Interest Rate Swaps

To manage the impact of the interest rate risk associated with our Credit Agreement (defined in Note 14. Debt Obligations), we enter into interest rate swaps from time to time, effectively converting a portion of the cash flows related to our variable rate debt into fixed rate cash flows.

As of December 31, 2018 and 2017, we had a combined notional principal amount of $550.0 million in each year, of variable to fixed interest rate swap agreements. As of December 31, 2018, the maximum length of time over which we have hedged a portion of our exposure due to interest rate risk was through December 31, 2022.

The fair value of our interest rate swaps was estimated using a valuation methodology based upon forward interest rates and volatility curves as well as other relevant economic measures, if necessary. Discount factors may be utilized to extrapolate a forecast of future cash flows associated with long dated transactions. The inputs, which represent Level 2 inputs in the valuation hierarchy, are obtained from independent pricing services and we have made no adjustments to those prices.

Weather Derivative

In the second quarters of 2018 and 2017, we entered into a yearly weather derivative arrangement to mitigate the impact of potential unfavorable weather on our operations under which we could receive payments totaling up to $20.0 million and $30.0 million, respectively, in the event that a hurricane of certain strength passes through the areas identified in the derivative arrangement. The weather derivative, which is accounted for using the intrinsic value method, was entered into with a single counterparty, and we are not required to post collateral.

We paid a premium of $1.0 million and $1.1 million in 2018 and 2017, respectively, which is amortized to Direct operating expenses on a straight-line basis over the one year term of the contract. Unamortized amounts associated with our weather derivative was approximately $0.5 million and $0.5 million at December 31, 2018 and December 31, 2017, respectively, and is included in Other current assets in our Consolidated Balance Sheets.

Financial Instruments Measured at Fair Value on a Recurring Basis – The following table summarizes the fair value of our derivative contracts (before netting adjustments) included in our Consolidated Balance Sheets (in thousands):

 
 
 
Asset Derivatives
 
Liability Derivatives
 
 
 
December 31,
 
December 31,
Type
Balance Sheet Classification
 
2018
 
2017
 
2018
 
2017
Commodity swaps
Accrued expenses and other current liabilities
 
$

 
$

 
$
(2
)
 
$

 
 
 
 
 
 
 
 
 
 
Interest rate swaps
Other current assets
 
4,314

 
2,677

 

 

Interest rate swaps
Other assets
 
6,017

 
8,807

 

 

 
 
 
 
 
 
 
 
 
 
Weather derivative
Other current assets
 
454

 
509

 

 

 
Total
 
$
10,785

 
$
11,993

 
$
(2
)
 
$



As of December 31, 2018 and 2017, there were no offsets to the fair value of our derivative assets and liabilities on a gross basis in the Consolidated Balance Sheets subject to enforceable master netting arrangements.

For the years ended December 31, 2018, 2017 and 2016, the realized and unrealized gains (losses) associated with our commodity, interest rate and weather derivative instruments were recorded in our Consolidated Statements of Operations, as follows (in thousands):
 
 
Realized
 
Unrealized
2018
 

Gains (losses) on commodity derivatives, net
 
$
2,038

 
$
(2
)
Interest expense, net of capitalized interest
 
5,894

 
(1,154
)
Direct operating and corporate expenses
 
(1,045
)
 

Total
 
$
6,887

 
$
(1,156
)
2017
 
 
 
 
Losses on commodity derivatives, net
 
$
(119
)
 
$

Interest expense, net of capitalized interest
 
89

 
1,109

Direct operating and corporate expenses
 
(1,030
)
 

Total
 
$
(1,060
)
 
$
1,109

2016
 
 
 
 
Losses on commodity derivatives, net
 
$
(1,569
)
 
$
(48
)
Interest expense, net of capitalized interest
 
(144
)
 
10,375

Direct operating and corporate expenses
 
(966
)
 

Total
 
$
(2,679
)
 
$
10,327

v3.19.1
Property, Plant and Equipment, Net
12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net

Property, plant and equipment, net, consists of the following (in thousands, excluding useful life):
 
 
Useful Life
(in years)
 
December 31,
2018
 
December 31,
2017
Land
N/A
 
$
14,635

 
$
18,145

Construction in progress
N/A
 
55,295

 
55,622

Transportation equipment
5 to 15
 
21,012

 
22,697

Buildings and improvements
4 to 40
 
11,503

 
16,235

Processing and treating plants
8 to 40
 
125,008

 
123,138

Pipelines and compressors
3 to 40
 
1,037,889

 
974,301

Storage
3 to 40
 
44,431

 
146,105

Equipment
5 to 20
 
65,793

 
80,220

Total property, plant and equipment
 
 
1,375,566

 
1,436,463

Less accumulated depreciation
 
 
(377,858
)
 
(340,878
)
Property, plant and equipment, net
 
 
$
997,708

 
$
1,095,585



At December 31, 2018 and 2017, gross property, plant and equipment included $382.0 million and $367.6 million, respectively, related to our FERC regulated interstate and intrastate assets.

Depreciation expense totaled $72.0 million, $76.9 million and $69.7 million for the years ended December 31, 2018, 2017 and 2016, respectively, which is included in Depreciation, amortization and accretion in our Consolidated Statements of Operations. Depreciation expense amounts have been adjusted by $8.1 million and $13.2 million for the years ended December 31, 2017 and 2016, respectively, to present the impact of classifying the Propane Business and Mid-Continent's operations as discontinued operations, with the Propane Business being divested in September 2017 and Mid-Continent's operations being divested in February 2016. Capitalized interest was $2.8 million, $2.5 million and $2.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Impairment

In the fourth quarter of 2018, in connection with our annual budget process, we identified certain assets where our projected future cash flows indicated we may not recover their carrying value. Based on this assessment, at December 31, 2018, we recorded an impairment charge of $1.6 million related to our property, plant and equipment. The impairment consisted of $1.5 million related to our AMID Liquids Trucking asset within our Liquid Pipelines and Services segment and $0.1 million related to our Offshore Pipelines and Services segment. Our fair value measurements related to these assets are based on projected future cash flows, which are significant inputs not observable in the market and thus represent a Level 3 measurement.

At December 31, 2017, we identified certain assets where events or circumstances indicated we may not recover their carrying value. In the fourth quarter of 2017, due to plant shutdowns and changes in our forecast volumes on certain assets as part of our annual budget process, we made decisions that impact our ability to recover the carrying value of assets. Accordingly, we have impaired our Yellow Rose, Bazor Chatom, Burns Point and Transtar assets in our Gas Gathering and Processing Services segment, COSL in our Liquid Pipeline and Services segment and Trigas in our Natural Gas Transportation services segment. The total impairment charge was $103.9 million related to our property, plant and equipment. The impairment consisted of $97.8 million related to our Gas Gathering and Processing Services segment, $3.9 million related to our Natural Gas Transportation Services segment and $2.2 million related to our Liquid Pipelines and Services segment. Our fair value measurements related to these assets are based on significant inputs not observable in the market and thus represent a Level 3 measurement.

There was an impairment charge of $0.7 million recorded in 2016.
v3.19.1
Goodwill and Intangible Assets, Net
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net
Goodwill and Intangible Assets, Net

Goodwill

The following table presents activity in the Partnership's goodwill balance as of December 31, 2018 and 2017 (in thousands):

 
 
Liquid Pipelines and Services
 
Offshore Pipelines and Services
 
Terminalling Services
 
Total
Balance at January 1, 2017
 
$
113,669

 
$

 
$
88,466

 
$
202,135

Transfers (1)
 
11,041

 

 
(11,041
)
 

Additions (2)
 

 
4,692

 

 
4,692

Impairment charges
 
(77,961
)
 

 

 
(77,961
)
Balance at December 31, 2017
 
46,749

 
4,692

 
77,425

 
128,866

Sale of assets(3)
 

 

 
(77,425
)
 
(77,425
)
Additions (2)
 

 
282

 

 
282

Impairment charges
 

 

 

 

Balance at December 31, 2018
 
$
46,749

 
$
4,974

 
$

 
$
51,723

 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
 
 
 
 
 
 
 

Goodwill
 
$
124,710

 
$
4,692

 
$
77,425

 
$
206,827

Accumulated impairment losses
 
(77,961
)
 

 

 
(77,961
)
 
 
$
46,749

 
$
4,692

 
$
77,425

 
$
128,866

 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
 
 
 
 
 
 
 
 
Goodwill
 
$
124,710

 
$
4,974

 
$

 
$
129,684

Accumulated impairment losses
 
(77,961
)
 

 

 
(77,961
)
 
 
$
46,749

 
$
4,974

 
$

 
$
51,723

_______________________
(1) 
During 2018, we reorganized our reporting structure resulting in a recast of our segment results to reflect the changes. See Note 23. Reportable Segments for a discussion on the restructuring of our reporting structure.
(2) 
Due to our Panther acquisition discussed in Note 4. Acquisitions, our goodwill balance increased by approximately $5.0 million associated with the Panther assets acquired and reported in our Offshore Pipelines and Services segment.
(3)
In 2018, our goodwill decreased $16.3 million due to Marine Products which was sold on July 31, 2018 and $61.1 million due to Refined Products which was sold on December 20, 2018. See Note 5. Dispositions for further discussions.

2017 Impairment

In 2017, as a result of our annual quantitative analysis in the fourth quarter, we identified that the fair value of two of our seven RUs, Silver Dollar and COSL, which are both in our Liquid Pipelines and Services segment, was less than their carrying values. Accordingly, we recorded an impairment charge of $78.0 million, of which $61.4 million is related to Silver Dollar and $16.6 million is related to COSL. The impairments were primarily due to changes in assumptions during our annual impairment testing and related primarily to the timing of estimated drilling by producers compared to previous expectations. These assumptions were adversely impacted due to delays in drilling and completions by producers.

2016 Impairment

In the fourth quarter of 2016, we recognized additional goodwill impairment charges totaling $2.7 million related to our JP Liquids businesses reported in our Liquid Pipelines and Services reportable segment as a result of our quantitative impairment analysis. We also recorded a goodwill impairment charge of $12.8 million in 2016 related to our Pinnacle Propane Express business that we disposed, which is reported in Income (loss) from discontinued operations, net of taxes in our Consolidated Statement of Operations. This was due primarily to declines in future estimated margins as a result of increased competition changes in propane prices.

Intangible assets, net

Overview

Intangible assets, net, consists of customer relationships, customer contracts, dedicated acreage agreements and collaborative arrangements as acquired in connection with business combinations. These intangible assets have definite lives and are subject to amortization on a straight-line basis over their economic lives, currently ranging from approximately 5 years to 30 years.

Intangible assets, net, consist of the following (in thousands):
 
December 31,
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
Customer relationships
$
64,744

 
$
110,483

 
$
(17,033
)
 
$
(29,965
)
 
$
47,711

 
$
80,518

Customer contracts
94,692

 
94,692

 
(53,156
)
 
(48,173
)
 
41,536

 
46,519

Dedicated acreage
42,547

 
42,547

 
(7,592
)
 
(6,216
)
 
34,955

 
36,331

Collaborative arrangements
11,884

 
11,884

 
(2,264
)
 
(1,415
)
 
9,620

 
10,469

Other
198

 
1,262

 
(28
)
 
(1,089
)
 
170

 
173

Total
$
214,065

 
$
260,868

 
$
(80,073
)
 
$
(86,858
)
 
$
133,992

 
$
174,010


During the fourth quarter of 2017, we identified certain assets where events or circumstances indicated we may not recover their carrying value. Accordingly, we recorded impairment charges of $10.8 million associated with the dedicated acreage related to our Yellow Rose asset in our Gas Gathering and Processing segment and $1.9 million associated with customer relationships related to our COSL asset in our Liquid Pipelines and Services segment. The charges are reported as a component of Impairment of long-lived assets and intangible assets line item in our Consolidated Statement of Operations for the year ended December 31, 2017. Our fair value measurements related to these assets are based on significant inputs not observable in the market and thus represent a Level 3 measurement.

For the years ended December 31, 2018, 2017 and 2016, amortization expense on our intangible assets was $10.3 million, $24.3 million and $19.2 million, respectively, which is included in Depreciation, amortization and accretion in the Consolidated Statements of Operations. Included in Income (loss) from discontinued operations, net of tax in our Consolidated Statements of Operations is amortization expense of $1.7 million and $2.9 million for the years ended December 31, 2017 and 2016, respectively, related to the Propane Business which was sold in 2017 and Mid-Continent Business which was sold in 2016.

Remaining estimated amortization expense is as follows (in thousands):
 
Estimated Amortization Expense
2019
$
10,182

2020
10,182

2021
10,182

2022
9,293

2023
6,626

Thereafter
87,321



The storage tank capacity in our crude oil storage facility in Cushing, Oklahoma is dedicated to one customer pursuant to a long-term contract with an initial expiration date of August 3, 2017 and an optional two-year renewal term. We did not receive a notice of the customer's intent to renew this contract by the required date of February 3, 2017 and therefore we accelerated the remaining amortization of the related customer relationship intangible of approximately $9.9 million over the remaining term of the contract, which expired on August 3, 2017.
v3.19.1
Investment in Unconsolidated Affiliates
12 Months Ended
Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Unconsolidated Affiliates
Investment in Unconsolidated Affiliates

For additional information about acquisitions by the Partnership of investments in unconsolidated affiliates, see Note 4. Acquisitions.

On August 8, 2017, we entered into a new joint venture agreement with Targa Midstream Services, LLC (“Targa”) through our previously wholly owned subsidiary Cayenne Pipeline, LLC (“Cayenne”). We received $5.0 million in cash in exchange for the sale of 50% ownership interest in Cayenne to Targa. The sole asset of the joint venture is a natural gas pipeline which was converted into an NGL pipeline. Both parties will each have 50% economic interests and 50% voting rights, with Targa serving as the operator of the pipeline and the joint venture. The additional costs of conversion and associated construction were shared equally by us and Targa. On December 28, 2017, the pipeline became operational. The gain recognized associated with this joint venture is included in the (Gain) loss on sales of assets, net in the Consolidated Statement of Operations for the year ended December 31, 2017.

The following table presents activity in the Partnership's investments in unconsolidated affiliates (in thousands):
 
 
Delta House (1)
 
Emerald Transactions
 
 
 
 
 
 
 
 
FPS
 
OGL
 
Destin
 
Tri-States
 
Okeanos
 
Wilprise
 
MPOG(2)
 
Cayenne
 
Total
Ownership % at December 31, 2017
35.7
%
 
35.7
%
 
66.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
%
 
50.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership % at December 31, 2018
35.7
%
 
35.7
%
 
66.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
%
 
50.0
%
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Balance at December 31, 2015
$
33,465

 
$
23,060

 
$

 
$

 
$

 
$

 
$
7,179

 
$

 
$
63,704

 
Investments
55,461

 
3,255

 
122,830

 
56,681

 
27,451

 
5,064

 

 

 
270,742

 
Earnings in unconsolidated affiliates
21,022

 
9,260

 
3,946

 
1,633

 
3,642

 
437

 
218

 

 
40,158

 
Contributions

 

 

 

 

 

 
429

 

 
429

 
Distributions
(45,465
)
 
(10,125
)
 
(15,894
)
 
(3,292
)
 
(4,034
)
 
(557
)
 
(3,679
)
 

 
(83,046
)
Balance at December 31, 2016
64,483

 
25,450

 
110,882

 
55,022

 
27,059

 
4,944

 
4,147

 

 
291,987

 
Investments
22,538

 
27,289

 
30,240

 

 

 

 
(2,365
)
 

 
77,702

 
Earnings in unconsolidated affiliates
28,794

 
12,536

 
9,457

 
4,395

 
7,719

 
719

 
(682
)
 
112

 
63,050

 
Contributions

 

 

 

 

 

 

 
6,542

 
6,542

 
Distributions
(25,403
)
 
(18,343
)
 
(26,334
)
 
(6,360
)
 
(12,333
)
 
(974
)
 
(1,100
)
 

 
(90,847
)
Balance at December 31, 2017
90,412

 
46,932

 
124,245

 
53,057

 
22,445

 
4,689

 

 
6,654

 
348,434

 
Earnings in unconsolidated affiliates
23,029

 
12,440

 
21,807

 
4,256

 
12,700

 
957

 

 
6,740

 
81,929

 
Contributions
847

 
6

 

 

 

 

 

 
4,293

 
5,146

 
Distributions
(23,201
)
 
(17,184
)
 
(31,701
)
 
(5,984
)
 
(14,504
)
 
(1,139
)
 

 
(4,000
)
 
(97,713
)
Balance at December 31, 2018
$
91,087

 
$
42,194

 
$
114,351

 
$
51,329

 
$
20,641

 
$
4,507

 
$

 
$
13,687

 
$
337,796


_______________________
(1)
Represents direct and indirect ownership interests in Class A units.
(2)  
We purchased the remaining equity interest in MPOG on August 8, 2017. See Note 4. Acquisitions.

The difference between our carrying value and the underlying equity in the net assets of our equity investments are assigned to the investment's assets and liabilities based on an analysis of the factors giving rise to the basis difference. The amortization of the basis difference is included in Earnings from unconsolidated affiliates in our Consolidated Statements of Operations.

The following table represents the basis difference by unconsolidated affiliate (in thousands):
 
 
Delta House
 
Emerald Transactions
 
 
 
 
 
 
FPS
 
OGL
 
Destin
 
Tri-States
 
Okeanos
 
Wilprise
 
Cayenne
 
Total
December 31, 2017
$
43,815

 
$
(8,998
)
 
$
881

 
$
32,092

 
$
(60,533
)
 
$
1,486

 
$
(3,936
)
 
$
4,807

December 31, 2018
$
41,762

 
$
(8,424
)
 
$
826

 
$
30,587

 
$
(57,039
)
 
$
1,374

 
$
(3,666
)
 
$
5,420



The following tables include summarized data for the entities underlying our equity method investments (in thousands) (amounts represent 100% of investee financial information):
 
 
December 31,
 
 
2018
 
2017
Current assets
 
$
96,116

 
$
80,405

Non-current assets
 
1,239,733

 
1,288,862

Current liabilities
 
14,700

 
130,904

Non-current liabilities
 
542,047

 
436,584


 
 
Delta House
 
Emerald Transactions
 
 
 
 
 
 
 
 
FPS
 
OGL
 
Destin
 
Tri-States
 
Okeanos
 
Wilprise
 
MPOG (1)
 
Cayenne
 
Total
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
Revenue
$
100,497

 
$
39,970

 
$
57,815

 
$
49,030

 
$
25,110

 
$
5,798

 
$

 
$
15,439

 
$
293,659

 
Operating expenses
1,190

 
389

 
13,741

 
8,872

 
1,442

 
752

 

 
1,381

 
27,767

 
Net income
70,355

 
33,285

 
32,792

 
34,565

 
13,807

 
4,224

 

 
12,940

 
201,968

 
Income attributable to Partnership
25,082

 
11,866

 
21,862

 
5,761

 
9,206

 
1,069

 

 
6,470

 
81,316

 
Basis difference amount recognized
(2,053
)
 
574

 
(55
)
 
(1,505
)
 
3,494

 
(112
)
 

 
270

 
613

 
Earnings in unconsolidated affiliates
23,029

 
12,440

 
21,807

 
4,256

 
12,700

 
957

 

 
6,740

 
81,929

 
Ownership percentage
35.7
%
 
35.7
%
 
66.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
%
 
50.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
Revenue
$
175,582

 
$
63,720

 
$
45,545

 
$
50,505

 
$
18,040

 
$
5,169

 
$
4,047

 
$

 
$
362,608

 
Operating expenses
1,243

 
370

 
17,841

 
9,583

 
1,906

 
1,085

 
2,199

 

 
34,227

 
Net income
138,648

 
57,123

 
18,036

 
35,400

 
6,336

 
3,281

 
(1,042
)
 

 
257,782

 
Income attributable to Partnership
30,244

 
12,322

 
9,649

 
5,900

 
4,224

 
830

 
(695
)
 

 
62,474

 
Basis difference amount recognized
(1,450
)
 
214

 
(192
)
 
(1,505
)
 
3,495

 
(111
)
 
13

 
112

 
576

 
Earnings in unconsolidated affiliates
28,794

 
12,536

 
9,457

 
4,395

 
7,719

 
719

 
(682
)
 
112

 
63,050

 
Ownership percentage
35.7
%
 
35.7
%
 
66.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
%
 
50.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
Revenue
$
182,059

 
$
68,381

 
$
32,319

 
$
25,557

 
$
10,453

 
$
3,276

 
$
8,957

 
$

 
$
331,002

 
Operating expenses
1,140

 
361

 
15,315

 
6,754

 
1,670

 
706

 
2,882

 

 
28,828

 
Net income
148,724

 
63,051

 
8,272

 
15,983

 
1,911

 
2,028

 
298

 

 
240,267

 
Income attributable to Partnership
21,306

 
9,279

 
4,108

 
2,663

 
1,274

 
513

 
198

 

 
39,341

 
Basis difference amount recognized
(284
)
 
(19
)
 
(162
)
 
(1,030
)
 
2,368

 
(76
)
 
20

 

 
817

 
Earnings in unconsolidated affiliates
21,022

 
9,260

 
3,946

 
1,633

 
3,642

 
437

 
218

 

 
40,158

 
Ownership percentage
20.1
%
 
20.1
%
 
49.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
66.7
%
 
%
 
 

_______________________
(1)
In August 2017, we acquired 100% of the interest in POGS, the outstanding interests in one of our equity investments. We have consolidated this entity from the acquisition date. See Note 4. Acquisitions for further discussion.
v3.19.1
Accrued Expenses and Other Current Liabilities
12 Months Ended
Dec. 31, 2018
Payables and Accruals [Abstract]  
Accounts Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following (in thousands):
 
 
December 31,
 
 
2018
 
2017
Capital expenditures
 
$
10,336

 
$
10,721

Accrued interest
 
3,910

 
3,190

Current portion of asset retirement obligation
 
3,846

 
6,416

Additional Blackwater acquisition consideration
 

 
5,000

Taxes payable
 
27,522

 
5,263

Due to related parties
 
9,566

 
6,609

Professional fees
 
3,483

 
1,848

Royalties, gas imbalance and leases payables
 
4,405

 
7,905

Other
 
15,544

 
21,902

     Total accrued expenses and other current liabilities
 
$
78,612

 
$
68,854

v3.19.1
Asset Retirement Obligations
12 Months Ended
Dec. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
Asset Retirement Obligations

We record a liability for the fair value of AROs and conditional AROs that we can reasonably estimate, on a discounted basis, in the period in which the liability is incurred. Generally, the fair value of the liability is calculated using discounted cash flow techniques and based on internal estimates and assumptions related to (i) future retirement costs, (ii) future inflation rates and (iii) credit adjusted risk-free interest rates. Significant increases or decreases in the assumptions would result in a significant change to the fair value measurement.

Certain assets related to our Offshore Pipelines and Services and Natural Gas Transportation Services segments have regulatory obligations to perform remediation, and in some instances dismantlement and removal activities, when the assets are abandoned. These AROs include varying levels of activity including disconnecting inactive assets from active assets, cleaning and purging assets, and in some cases, completely removing the assets and returning the land to its original state. These assets have been in existence for many years, and with regular maintenance will continue to be in service for many years to come. It is not possible to predict when demand for these transmission services will cease; however, we do not believe that such demand will cease for the foreseeable future. The majority of the current portion of our AROs, which is included in Accrued expenses and other current liabilities in our Consolidated Balance Sheets, is related to the retirement of the Midla pipeline. For further discussion related to the retirement of the Midla Pipeline, see the Note 14. Debt Obligations.

The following table presents activity in our AROs (in thousands):
 
Years Ended December 31,
 
2018
 
2017
Balance as of January 1,
$
72,610

 
$
50,862

Additions (1)
260

 
8,922

Revision in estimate (2)
(216
)
 
11,516

Disposals
(515
)
 

Expenditures
(4,440
)
 
(697
)
Accretion expense
3,598

 
2,007

Balance as of December 31,
71,297

 
72,610

Current portion
3,846

 
6,416

Non-current portion
$
67,451

 
$
66,194

_________________________
(1)
Year ended December 31, 2017, includes $8.7 million assumed in connection with the Panther acquisition on August 8, 2017 described in Note 4. Acquisitions. This assumed ARO in 2017 was associated with PPL, POGS and MPOG entities. Of the balance, the total ARO associated with MPOG was approximately $7.0 million. This balance represents 100% of the ARO balance associated with MPOG that we assumed as a result of purchasing the remaining 33.3% of ownership of MPOG, which was our 66.7% investment pre-August 8, 2017.
(2)  
Year ended December 31, 2017, represents updated liability associated with the ARO relating to our High Point assets in the Offshore Pipelines and Services segment. This update was due to our annual review of ARO obligations which resulted in a revised estimated cost of the original ARO recorded.

We may be required to establish security against potential ARO relating to the abandonment of certain transmission assets that may be imposed on the previous owner by applicable regulatory authorities. We have deposited $5.0 million with a third party to secure our performance on these potential obligations. These deposits are included in Restricted cash – long term in our Consolidated Balance Sheets as of December 31, 2018 and 2017.
v3.19.1
Debt Obligations
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Debt Obligations
Debt Obligations

Our outstanding debt consists of the following as of December 31, 2018 and 2017 (in thousands):
 
December 31, 2018
 
December 31, 2017
Credit Agreement
$
514,800

 
$
697,900

8.50% Senior unsecured notes, due 2021
425,000

 
425,000

3.77% Senior secured notes, due 2031 (non-recourse)
57,517

 
58,324

3.97% Senior secured notes, due 2032 (non-recourse)
30,270

 
32,025

Other debt
4,127

 
4,989

Total debt obligations
1,031,714

 
1,218,238

Unamortized debt issuance costs
(8,009
)
 
(9,231
)
Total debt
1,023,705

 
1,209,007

Current portion of long-term debt
(522,966
)
 
(7,551
)
Long-term debt
$
500,739

 
$
1,201,456



AMID Revolving Credit Agreement

On March 8, 2017, the Partnership along with other subsidiaries of the Partnership (collectively, the “Borrowers”) entered into the Second Amended and Restated Credit Agreement, with Bank of America N.A., as Administrative Agent, Collateral Agent and L/C Issuer, Wells Fargo Bank, National Association, as Syndication Agent, and other lenders (the “Original Credit Agreement”).
The Original Credit Agreement had an initial borrowing commitment of $900.0 million and provided for an accordion feature that would permit, subject to customary conditions, the borrowing commitment under the facility to be increased to a maximum of $1.1 billion. As a result of the Amendments, defined below, the borrowing commitment under the Credit Agreement, defined below, was $620.0 million at December 31, 2018.
During 2018, we amended the Original Credit Agreement by entering into the First Amendment to the Second Amended and Restated Credit Agreement on June 29, 2018 and by entering into the Second Amendment to the Second Amended and Restated Credit Agreement on December 27, 2018 (collectively, the “Amendments” and, the Original Credit Agreement as amended by the Amendments, the “Credit Agreement”; capitalized terms used but not defined herein shall have the meanings assigned thereto in the Credit Agreement) with a syndicate of lenders and Bank of America, N.A., as administrative agent.
The Credit Agreement matures on September 5, 2019, and therefore, is being presented as a current liability in our Consolidated Balance Sheet as of December 31, 2018.
The Amendments add a required prepayment in the amount equal to 100% of the net cash proceeds received from the Marine Products and Refined Products asset sales and any other disposition greater than $5 million.
On July 31, 2018, we completed the sale of Marine Products. Net proceeds from this disposition were $208.6 million, exclusive of $5.7 million in advisory fees and other costs, and were used to pay down the Credit Agreement.
On December 20, 2018, we completed the sale of Refined Products. Net proceeds from this disposition were approximately $125.0 million, exclusive of $3.7 million in advisory fees and other costs, and were used to pay down the Credit Agreement.
The Amendments also amend our borrowing commitment as follows:
upon consummation of the Marine Products sale, the aggregate commitment under the Credit Agreement was automatically reduced by $200.0 million;
upon consummation of the Refined Products sale, the aggregate commitment under the Credit Agreement was automatically reduced by $80.0 million; and
upon consummation of any disposition greater than $7.5 million, the aggregate commitment under the Credit Agreement shall be automatically reduced by 50% of the net cash proceeds of such disposition.

The Amendments add new pricing tiers of LIBOR + 3.50% when Consolidated Total Leverage Ratio equals or exceeds 5.0:1.0 and LIBOR + 4.00% when Consolidated Total Leverage Ratio equals or exceeds 5.5:1.0. The Credit Agreement includes the following financial covenants, as amended by the Amendments and defined in the Credit Agreement, which financial covenants will be tested on a quarterly basis, for the fiscal quarter then ending:
 
Minimum Consolidated Interest Coverage Ratio
 
Maximum Consolidated Total Leverage Ratio
 
Maximum Consolidated Secured Leverage Ratio
December 31, 2018
1.75:1.00
 
6.25:1.00
 
3.75:1.00
March 31, 2019
1.75:1.00
 
6.50:1.00
 
3.75:1.00
June 30, 2019 and thereafter
1.50:1.00
 
5.75:1.00
 
3.50:1.00

As of December 31, 2018, we were in compliance with our Credit Agreement financial covenants, including those shown below:
Ratio
 
 
 
Actual
Consolidated Interest Coverage Ratio
 
 
 
2.12
Consolidated Total Leverage Ratio
 
 
 
5.79
Consolidated Secured Leverage Ratio
 
 
 
3.17


We also pay a commitment fee ranging from 0.375% to 0.50% per annum, depending on our total leverage ratio then in effect, on the undrawn portion of the revolving loan under the Credit Agreement.

Our ability to maintain compliance with the leverage and interest coverage ratios included in the Credit Agreement may be subject to, among other things, the timing and success of initiatives we are pursuing, which may include expansion capital projects, acquisitions or drop down transactions, as well as the associated financing for such initiatives. The terms of the Credit Agreement also include covenants that restrict our ability to make cash distributions and acquisitions in some circumstances. If required, ArcLight , which controls the General Partner of the Partnership, has confirmed its intent to provide financial support for the Partnership to maintain compliance with the covenants contained in the Credit Agreement through April 10, 2019.

All obligations under the Credit Agreement and the guarantees of those obligations are secured, subject to certain exceptions, by a first-priority lien on and security interest in (i) substantially all of the Borrowers’ assets and the assets of certain of the subsidiaries of the Partnership and (ii) the capital stock of certain of the Partnership’s subsidiaries.
The guarantees by the Guarantors are full and unconditional and joint and several among the Guarantors. The terms of the Credit Agreement include covenants that restrict our ability to make cash distributions and acquisitions in some circumstances.

As of December 31, 2018, we had $514.8 million of borrowings, $39.3 million of letters of credit outstanding and $65.9 million of remaining borrowing commitment under the Credit Agreement, of which $39.8 million was available as of December 31, 2018. The carrying value of amounts outstanding under the Credit Agreement approximates the related fair value, as interest charges vary with market rates conditions. For the years ended December 31, 2018, 2017 and 2016, the weighted average interest rate, excluding the impact of interest rate swaps, on borrowings under our Credit Agreement was approximately 6.47%, 4.96% and 4.29%, respectively.

JPE Credit Agreement

On February 12, 2014, we entered into the JPE Credit Agreement with Bank of America, N.A, which was available for refinancing and repayment of certain existing indebtedness, working capital, capital expenditures, permitted acquisitions and other general partnership purposes. The JPE Credit Agreement consisted of a $275.0 million revolving loan, which included a sub-limit of up to $100.0 million for letters of credit.

Borrowings under the JPE Credit Agreement bore interest at a rate per annum equal to, at our option, either (a) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.5%, (2) the prime rate of Bank of America, and (3) LIBOR, subject to certain adjustments, plus 1.00% or (b) LIBOR, in each case plus an applicable rate. The applicable rate was (a) 1.25% for prime rate borrowing and 2.25% for LIBOR borrowings. The commitment fee was subject to an adjustment each quarter based in the Consolidated Net Total Leverage Ratio, as defined in the related agreement. The carrying value of amounts outstanding under the JPE Credit Agreement approximates the related fair value, as interest charges vary with market rate conditions.

The JPE Credit Agreement was scheduled to mature on February 12, 2019, but was paid off and terminated on March 8, 2017 in connection with the Partnership's acquisition of JPE.

8.50% Senior Notes

On December 28, 2016, the Partnership and American Midstream Finance Corporation, our wholly-owned subsidiary (the “Co-Issuer” and together with the Partnership, the “Issuers”), completed the issuance and sale of $300 million aggregate principal amount of their 8.50% Senior Notes due 2021 (the "8.50% Senior Notes"). The 8.50% Senior Notes are jointly and severally guaranteed by certain of the Partnership's subsidiaries. The 8.50% Senior Notes rank equal in right of payment with all existing and future senior indebtedness of the Issuers, and senior in right of payment to any future subordinated indebtedness of the Issuers. The 8.50% Senior Notes were issued at par and provided approximately $294.0 million in proceeds, after deducting the initial purchasers' discount of $6.0 million. The Partnership also incurred $2.7 million of direct issuance costs resulting in net proceeds related to the 8.50% Senior Notes of $291.3 million.

On December 19, 2017, the Issuers completed the issuance and sale of an additional $125 million in aggregate principal amount of 8.50% Senior Notes (the “Additional Issuance”), net of issuance cost of approximately $3.0 million.

The Additional Issuance will mature on December 15, 2021 and interest on the Additional Issuance will accrue from December 15, 2017. Interest on the Additional Issuance is payable in cash semiannually in arrears on each June 15 and December 15, with interest payable on the Additional Issuance commencing June 15, 2018. Interest will be payable to holders of record on June 1st and December 1st immediately preceding the related interest payment date and will be computed on the basis of a 360-day year consisting of twelve 30-day months. Pursuant to the registration rights agreements entered into in connection with the issuances of the8.50% Senior Notes, additional interest on the 8.50% Senior Notes accrues at 0.25% per annum for the first 90-day period following December 23, 2017 and by an additional 0.25% per annum with respect to each subsequent 90-day period, up to a maximum additional rate of 1.00% per annum over 8.50%, until we complete an exchange offer for the 8.50% Senior Notes.

At any time prior to December 15, 2018, the Issuers were able to redeem up to 35% of the aggregate principal amount of 8.50% Senior Notes, at a redemption price of 108.50% of the principal amount, plus accrued and unpaid interest to the redemption date, in an amount not greater than the net cash proceeds of one or more equity offerings by the Partnership, provided that:

at least 65% of the aggregate principal amount of the 8.50% Senior Notes remains outstanding immediately after such redemption (excluding 8.50% Senior Notes held by the Partnership and its subsidiaries); and
the redemption occurs within 180 days of the closing of each such equity offering.

On and after December 15, 2018, the Issuers may redeem all or a part of the 8.50% Senior Notes, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if redeemed during the twelve-month period beginning on December 15 of the years indicated below:
Year
Percentage
2018
104.250%
2019
102.125%
2020 and thereafter
100.000%

The indenture restricts the Partnership’s ability and the ability of certain of its subsidiaries to, among other things: (i) incur, assume or guarantee additional indebtedness, issue any disqualified stock or issue preferred units, (ii) create liens to secure indebtedness, (iii) pay distributions on equity securities, redeem or repurchase equity securities or redeem or repurchase subordinated securities, (iv) make investments, (v) restrict distributions, loans or other asset transfers from restricted subsidiaries, (vi) consolidate with or merge with or into, or sell substantially all of its properties to, another person, (vii) sell or otherwise dispose of assets, including equity interests in subsidiaries, (viii) enter into transactions with affiliates, (ix) engage in certain business activities and (x) enter into sale and leaseback transactions. These covenants are subject to a number of important exceptions and qualifications. If at any time the 8.50% Senior Notes are rated investment grade by either Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services and no Default or Event of Default (as each are defined in the Indenture) has occurred and is continuing, many of such covenants will terminate and the Partnership and its subsidiaries will cease to be subject to such covenants.

3.77% Senior Notes

On September 30, 2016, Midla Financing, LLC ("Midla Financing"), American Midstream (Midla), LLC (“Midla”), and Mid Louisiana Gas Transmission LLC ("MLGT") and together with Midla, (the "Note Guarantors") entered into a Note Purchase and Guaranty Agreement with certain institutional investors (the “Purchasers”) whereby Midla Financing issued $60.0 million in aggregate principal amount of 3.77% Senior Notes due June 30, 2031. Principal and interest on the 3.77% Senior Notes is payable in installments on the last business day of each quarter beginning June 30, 2017 with the remaining balance payable in full on June 30, 2031. The average quarterly principal payment is approximately $1.1 million. The 3.77% Senior Notes were issued at par and provided proceeds of approximately $57.7 million, net of debt issuance costs of $2.3 million.

Net proceeds from the 3.77% Senior Notes are restricted and will be used to fund project costs incurred in connection with the construction of the Midla-Natchez Line, the retirement of Midla’s existing 1920’s pipeline, the move of our Baton Rouge operations to the MLGT system and the reconfiguration of the DeSiard compression system and all related ancillary facilities. These proceeds can also be used to pay costs incurred in connection with the issuance of the 3.77% Senior Notes, and for the general corporate purposes of Midla Financing. In addition, revenue is required to be deposited into restricted cash accounts and disbursements must be approved by the lender. As of December 31, 2018 and December 31, 2017, Restricted cash included $23.4 million and $14.9 million related to the 3.77% Senior Notes.

The Note Purchase Agreement includes customary representations and warranties, affirmative and negative covenants (including financial covenants), and events of default that are customary for a transaction of this type. Midla Financing must maintain a debt service reserve account containing six months of principal and interest payments, and Midla Financing and the Note Guarantors (including any entities that become guarantors under the terms of the 3.77% Senior Note Purchase Agreement) are restricted from making distributions until June 30, 2017, unless the debt service coverage ratio is not less than, and is not projected to be for the following 12 calendar months less than, 1.20:1.00, and unless certain other requirements are met.

In connection with the 3.77% Senior Note Purchase Agreement, the Note Guarantors guaranteed the payment in full of all Midla Financing’s related obligations. Also, Midla Financing and the Note Guarantors granted a security interest in substantially all of their tangible and intangible personal assets, including the membership interests in each Note Guarantor held by Midla Financing, and Midla Holdings pledged the membership interests in Midla Financing to the Collateral Agent.

3.97% Trans-Union Senior Secured Notes

On May 10, 2016, Trans-Union Interstate Pipeline, LP ("Trans-Union") entered into an agreement with certain institutional investors in the insurance business represented by Babson Capital Management LLC (the "lender") whereby Trans-Union issued $35.0 million in aggregate principal amount of 3.97% Senior Secured Notes ("Trans-Union Senior Notes") due December 31, 2032. Principal and interest on the Trans-Union Senior Notes were payable in installments on the last business day of each quarter beginning June 30, 2016 with the remaining balance payable in full on December 31, 2032. The average quarterly principal payment is approximately $0.5 million. The Trans-Union Senior Notes were issued at par and provided net proceeds of approximately $34.6 million after deducting related issuance cost of approximately $0.4 million. The Partnership assumed the Trans-Union Senior Notes following the Trans-Union acquisition on November 3, 2017. See Note 4. Acquisitions.

The Trans-Union Senior Notes also required pledged accounts in which revenue is required to be deposited into these accounts and disbursements must be approved by the lender. As of December 31, 2018 and 2017, we had $6.8 million and $1.7 million, respectively in Restricted cash in our Consolidated Balance Sheets.

The following table presents the carrying value and estimated fair value of our debt as of December 31, 2018 and December 31, 2017. Short-term and long-term debt are recorded at amortized cost in the Consolidated Balance Sheets.
 
 
December 31, 2018
 
December 31, 2017
 
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Debt
 
 
 
 
 
 
 
 
8.5% Senior Unsecured Notes
 
$
419,451

 
$
399,789

 
$
418,421

 
$
437,062

3.77% Senior Secured Notes
 
55,370

 
51,567

 
56,005

 
53,845

3.97% Trans-Union Secured Senior Notes
 
29,956

 
27,822

 
31,692

 
30,221

Total
 
$
504,777

 
$
479,178

 
$
506,118

 
$
521,128



The fair value of debt instruments are valued using a market approach based on quoted prices for similar instruments traded in active markets and are classified as Level 2 within the fair value hierarchy. All financial instruments in the table above are classified as Level 2. The carrying value of amounts outstanding under the Credit Agreement approximates the related fair value, as interest charges vary with market rate conditions.

Going Concern Assessment and Management’s Plans

Pursuant to FASB ASC 205-40, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern, we are required to assess our ability to continue as a going concern for a period of one year from the date of the issuance of these consolidated financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. As discussed above in AMID Revolving Credit Agreement, our Credit Agreement matures on September 5, 2019 and has not been renewed as of the date of the issuance of these consolidated financial statements.

As discussed in Note 21. Related Party Transactions, on September 27, 2018, the Board received a non-binding proposal from Magnolia, an affiliate of ArcLight to acquire the common units that it does not already own. On March 17, 2019, we entered into the Merger Agreement and expect the Pending Merger to close in the second quarter of 2019. As the Merger Agreement is subject to customary closing conditions and because the Pending Merger may affect how, or if, the Partnership elects to obtain a maturity extension, management has deferred finalization of a renewal of the Credit Agreement.

While we intend to renew or extend the terms of our Credit Agreement, until such time as we have executed an agreement to refinance or extend the maturity of our Credit Agreement, we cannot conclude that it is probable we will do so, and accordingly, this raises substantial doubt about our ability to continue as a going concern.
v3.19.1
Convertible Preferred Units
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Convertible Preferred Units
Convertible Preferred Units

Our convertible preferred units consist of the following (in thousands):

 
Series A
 
Series C
 
Series D
 
Total
 
Units
$
 
Units
$
 
Units
$
 
$
December 31, 2016
10,107

$
181,386

 
8,792

$
118,229

 
2,333

$
34,475

 
$
334,090

Issuance of units


 


 
(2,333
)
(34,475
)
 
(34,475
)
Paid in kind unit distributions
612

10,412

 
173

7,153

 


 
17,565

December 31, 2017
10,719

$
191,798

 
8,965

$
125,382

 

$

 
$
317,180

Paid in kind unit distributions
291

3,983

 
277

3,461

 


 
7,444

December 31, 2018
11,010

$
195,781

 
9,242

$
128,843

 

$

 
$
324,624



Affiliates of our General Partner hold and participate in quarterly distributions on our convertible preferred units, with such distributions being made in cash, paid-in-kind units or a combination thereof at the election of the Board. The convertible preferred unitholders have the right to receive cumulative distributions in the same priority and prior to any other distributions made in respect of any other partnership interests.

To the extent that any portion of a quarterly distribution on our convertible preferred units to be paid in cash exceeds the amount of cash available for such distribution, the amount of cash available will be paid to our convertible preferred unitholders on a pro rata basis while the difference between the distribution and the available cash will accrue interest until paid.

Series A-1 Convertible Preferred Units

On April 15, 2013, the Partnership, our General Partner and AIM Midstream Holdings entered into agreements with HPIP, pursuant to which HPIP acquired 90% of our General Partner and all of our subordinated units from AIM Midstream Holdings and contributed the High Point System and $15.0 million in cash to us in exchange for 5,142,857 of our Series A-1 Units.

Except as provided in the Partnership Agreement, the Series A-1 Units have voting rights that are identical to the voting rights of the common units and will vote with the common units as a single class, with each Series A-1 Unit entitled to one vote for each common unit into which such Series A-1 Unit is convertible. The Series A-1 Units receive distributions prior to distributions to our common unitholders. The distributions on the Series A-1 Units are equal to the greater of $0.4125 per unit or the declared distribution to common unitholders. The Series A-1 Units may be converted into common units on a one-to-one basis, subject to customary anti-dilutive adjustments, at the option of the unitholders on or any time after January 1, 2014. As of December 31, 2018, the conversion price was $13.66 and the conversion ratio was 1.281. The sale of the Series A-1 Units was exempt from registration pursuant to Rule 4(a)(2) under The Securities Act of 1933 (the "Act").
 
Upon any liquidation and winding up of the Partnership or the sale of substantially all of its assets, the holders of Series A-1 Units will generally be entitled to receive, in preference to the holders of any of the Partnership's other equity securities, but in parity with all convertible preferred units, an amount equal to the sum of $17.50 multiplied by the number of Series A-1 Units owned by such holders, plus all accrued but unpaid distributions on such Series A Units.

Prior to the consummation of any recapitalization, reorganization, consolidation, merger, spin-off or other business combination in which the holders of common units are to receive securities, cash or other assets (a "Partnership Event"), we are obligated to make an irrevocable written offer, subject to consummation of the Partnership Event, to each holder of Series A Units to redeem all (but not less than all) of such holder's Series A-1 Units for a per unit price payable in cash as described in the Partnership Agreement.

Upon receipt of such a redemption offer from us, each holder of Series A-1 Units may elect to receive such cash amount or a preferred security issued by the person surviving or resulting from such Partnership Event and containing provisions substantially equivalent to the provisions set forth in the Partnership Agreement with respect to the Series A-1 Units without material abridgement.

As conversion is at the option of the holder and redemption is contingent upon a future event which is outside the control of the Partnership, the Series A-1 Units have been classified as mezzanine equity in our Consolidated Balance Sheets.

Under the Partnership Agreement, distributions on Series A-1 Units can be made with paid-in-kind Series A-1 Units, cash or a combination thereof, at the discretion of the Board. At December 31, 2018, we accrued $2.8 million of contractual paid-in-kind distributions on the Series A-1 Units.

Beginning with the quarter ending March 31, 2019 and all quarters thereafter, distributions on Series C Units must be made in cash. Under our Partnership Agreement, if we fail to pay distribution on the Series C in cash when due, we are prohibited from paying distributions on the Series A-1 Units in cash or in-kind. We do not expect to be able to pay a cash distribution on the Series C Units with respect to the quarter ending March 31, 2019. As a result, the Series A-1 Units will accrue arrearages with respect to unpaid distributions starting with the quarter ending March 31, 2019.

Series A-2 Convertible Preferred Units

On March 30, 2015 and June 30, 2015, we entered into two Series A-2 Convertible Preferred Unit Purchase Agreements with Magnolia, an affiliate of HPIP, pursuant to which the Partnership issued, in separate private placements, newly-designated Series A-2 Units (the “Series A-2 Units”) representing limited partnership interests in the Partnership. As a result, the Partnership issued a total of 2,571,430 Series A-2 Units for approximately $45 million in aggregate proceeds during the year ended December 31, 2015. The Series A-2 Units will participate in distributions of the Partnership along with common units in a manner identical to the existing Series A-1 Units (together with the Series A-2 Units, the "Series A Units"), with such distributions being made in cash or with paid-in-kind Series A Units at the election of the Board.

On July 27, 2015, we amended our Partnership Agreement to grant us the right (the “Call Right”) to require the holders of the Series A-2 Units to sell, assign and transfer all or a portion of the then outstanding Series A-2 Units to us for a purchase price of $17.50 per Series A-2 Unit (subject to appropriate adjustment for any equity distribution, subdivision or combination of equity interests in the Partnership). We may exercise the Call Right at any time, in connection with our or our affiliate’s acquisition of assets or equity from ArcLight Energy Partners Fund V, L.P., or one of its affiliates, for a purchase price in excess of $100 million. We may not exercise the Call Right with respect to any Series A-2 Units that a holder has elected to convert into common units on or prior to the date we have provided notice of our intent to exercise the Call Right, and we may also not exercise the Call Right if doing so would result in a default under any of our or our affiliates’ financing agreements or obligations. As of December 31, 2018, the conversion price was $13.66 and the conversion ratio was 1.281. The sale of the Series A-2 Units was exempt from registration pursuant to Rule 4(a)(2) under the Securities Act.

Upon any liquidation and winding up of the Partnership or the sale of substantially all of its assets, the holders of Series A-2 Units will generally be entitled to receive, in preference to the holders of any of the Partnership's other equity securities, but in parity with all convertible preferred units, an amount equal to the sum of $17.50 multiplied by the number of Series A-2 Units owned by such holders, plus all accrued but unpaid distributions on such Series A Units.

As conversion is at the option of the holder and redemption is contingent upon a future event which is outside the control of the Partnership, the Series A-2 Units have been classified as mezzanine equity in our Consolidated Balance Sheets.

Under the Partnership Agreement, distributions on Series A-2 Units can be made with paid-in-kind Series A-2 Units, cash or a combination thereof, at the discretion of the Board. At December 31, 2018, we accrued $1.2 million of contractual paid-in-kind distributions on the Series A-2 Units.

Beginning with the quarter ending March 31, 2019 and all quarters thereafter, distributions on Series C Units must be made in cash. Under our Partnership Agreement, if we fail to pay distribution on the Series C in cash when due, we are prohibited from paying distributions on the Series A-2 Units in cash or in-kind. We do not expect to be able to pay a cash distribution on the Series C Units with respect to the quarter ending March 31, 2019. As a result, the Series A-2 Units will accrue arrearages with respect to unpaid distributions starting with the quarter ending March 31, 2019.

Series C Convertible Preferred Units

On April 25, 2016, the Partnership issued 8,571,429 of its Series C Units to an ArcLight affiliate in connection with the Emerald Transactions described in Note 4. Acquisitions.

The Series C Units have voting rights that are identical to the voting rights of the common units and will vote with the common units as a single class on an as converted basis, with each Series C Unit initially entitled to one vote for each common unit into which such Series C Unit is convertible. The Series C Units also have separate class voting rights on any matter, including a merger, consolidation or business combination, that adversely affects, amends or modifies any of the rights, preferences, privileges or terms of the Series C Units. The Series C Units are convertible in whole or in part into common units at any time. The number of common units into which a Series C Unit is convertible will be an amount equal to the sum of $14.00 plus all accrued and accumulated but unpaid distributions, divided by the conversion price. The sale of the Series C Units was exempt from registration pursuant to Rule 4(a)(2) under the Securities Act.

In the event that the Partnership issues, sells or grants any common units or convertible securities at an indicative per common unit price that is less than $14.00 per common unit (subject to customary anti-dilution adjustments), then the conversion price will be adjusted according to a formula to provide for an increase in the number of common units into which Series C Units are convertible. As of December 31, 2018, the conversion price was $13.98 and the conversion ratio was 1.001.

Prior to consummating any recapitalization, reorganization, consolidation, merger, spin-off or other business combination in which the holders of common units are to receive securities, cash or other assets, we are obligated to make an irrevocable written offer, subject to consummating the Partnership Event, to the holders of Series C Units to redeem all (but not less than all) of the Series C Units for a price per Series C Unit payable in cash as described in the Partnership Agreement.

Upon receipt of a redemption offer, each holder of Series C Preferred Units may elect to receive the cash amount or a preferred security issued by the person surviving or resulting from the Partnership Event and containing provisions substantially equivalent to the provisions set forth in the Partnership Agreement with respect to the Series C Preferred Units without material abridgement.

Upon any liquidation and winding up of the Partnership or the sale of substantially all of the assets of the Partnership, the holders of Series C Units generally will be entitled to receive, in preference to the holders of any of the Partnership's other equity securities but in parity with all convertible preferred units, an amount equal to the sum of the $14.00 multiplied by the number of Series C Units owned by such holders, plus all accrued but unpaid distributions.

Distributions on Series C Units can be made with paid-in-kind Series C Units, cash or a combination thereof, at the discretion of the Board and upon the consent of the holders of the Series C Units for the quarters through and including the quarter ended December 31, 2018. At December 31, 2018, we accrued $3.5 million of contractual paid-in-kind distributions on the Series C Units.

With respect to quarter ending March 31, 2019 and all quarters thereafter, distributions on Series C Units must be made in cash. As a result of the Second Amendment, the Series C Units will accrue arrearages with respect to unpaid distributions starting with the quarter ending March 31, 2019. We do not expect to be able to pay a cash distribution on the Series C Units with respect to the quarter ending March 31, 2019.

In connection with the issuance of the Series C Units, the Partnership issued to the holders (the "Series C Warrant"). The Series C Warrant is subject to standard anti-dilution adjustments and is exercisable for a period of seven years.

On April 25, 2017, the number of common units that may be purchased pursuant to the exercise of the Series C Warrant was adjusted by an amount, rounded to the nearest whole common unit, equal to the product obtained by the following calculation: (i) 400,000 multiplied by (ii) (A) the Series C Issue Price (as defined in the Series C Warrant) multiplied by the number of Series C Units then outstanding less $45.0 million divided by (B) the Series C Issue Price multiplied by the number of Series C Units issued, less $45.0 million. As a result of such adjustment, the number of common units that can be purchased upon the exercise of the Series C Warrant increased by 416,485 common units.

Any Series C Units issued in-kind as a distribution to holders of Series C Units (“Series C PIK Units”) will increase the number of common units that can be purchased upon exercise of the Series C Warrant by an amount, rounded to the nearest whole common unit, equal to the product obtained by the following calculation: (i) the total number of common units into which each Series C Warrant may be exercised immediately prior to the most recent issuance of the Series C PIK Units multiplied by (ii) (A) the total number of outstanding Series C Units immediately after the most recent issuance of Series C PIK Units divided by (B) the total number of outstanding Series C Units immediately prior to the most recent issuance of Series C PIK Units. As of December 31, 2018, the number of common units that can be purchased upon the exercise of the Series C Warrant increased to 1,291,869 common units.

The fair value of the Series C Warrant was determined using a market approach that utilized significant inputs which are not observable in the market and thus represent a Level 3 measurement as defined by ASC No. 820 – Fair Value Measurement. The estimated fair value of $4.41 per warrant unit was determined using a Black-Scholes model and the following significant assumptions: i) a dividend yield of 18%, ii) common unit volatility of 42% and iii) the seven-year term of the warrant to arrive at an aggregate fair value of $4.5 million.

As conversion is at the option of the holder and redemption is contingent upon a future event which is outside the control of the Partnership, the Series C Units have been classified as mezzanine equity in our Consolidated Balance Sheets.

Series D Convertible Preferred Units

On October 31, 2016, Partnership issued 2,333,333 shares of its newly-designated Series D Units to an ArcLight affiliate at a price of $15.00 per unit, less a 1.5% closing fee, in connection with the Delta House transaction described in Note 4. Acquisitions. The fair value of the conditional Series D Warrant at the time of issuance was immaterial.

On October 2, 2017, pursuant to the terms of our Partnership Agreement, we exercised our call right to repurchase all of the 2,333,333 outstanding Series D Units from Magnolia for approximately $37.0 million in cash, which was funded through our Credit Agreement. Of this amount, approximately $2.5 million was associated with the dividend distribution associated with Series D Units, as reported in line item Distributions in our Consolidated Statement of Cash Flows. After the closing date of such redemption, which occurred on October 2, 2017, there were no more outstanding Series D Units.
v3.19.1
Partners' Capital
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Partners' Capital
Partners' Capital

American Midstream Outstanding Units

The following table presents unit activity (in thousands):
 
 
General
Partner Interest
 
Limited Partner Interest
 
Series B Convertible Units
Balances at December 31, 2015
 
536

 
50,504

 
1,350

Conversion of Series B Units
 

 
1,350

 
(1,350
)
LTIP vesting
 

 
283

 

Issuance of GP units
 
144

 

 

Return of escrow units
 

 
(1,034
)
 

Issuance of common units
 

 
248

 

Balances at December 31, 2016
 
680

 
51,351

 

LTIP vesting
 

 
431

 

Issuance of GP units
 
285

 

 

Issuance of common units
 

 
929

 

Balances at December 31, 2017
 
965

 
52,711

 

LTIP vesting
 

 
495

 

Issuance of GP units
 
16

 

 

Issuance of common units (1)
 

 
811

 

Balances at December 31, 2018
 
981

 
54,017

 


_______________________
(1)
Represents common units issued to an affiliate of ArcLight to satisfy the earn-out obligation related to Blackwater Midstream Holdings, LLC. See Note 21. Related Party Transactions for more information.

Our capital accounts are comprised of approximately 1.3% notional General Partner interest and 98.7% limited partner interests as of December 31, 2018. Our limited partners have limited rights of ownership as provided for under our Partnership Agreement and the right to participate in our distributions. Our General Partner manages our operations and participates in our distributions, including certain incentive distributions pursuant to the incentive distribution rights that are non-voting limited partner interests held by our General Partner. Pursuant to our Partnership Agreement, our General Partner participates in losses and distributions based on its interest. The General Partner's participation in the allocation of losses and distributions is not limited and therefore, such participation can result in a deficit to its respective capital account. As such, allocation of losses and distributions for previous transactions between entities under common control have resulted in a deficit to the General Partner's capital account included in our Consolidated Balance Sheets.

Series B Convertible Preferred Units

Effective January 31, 2014, the Partnership issued 1,168,225 Series B Units to its General Partner in exchange for approximately $30.0 million to fund a portion of the Lavaca acquisition. The Series B Units participated in distributions of the Board along with common units, with such distributions being made in cash distributions or with paid-in-kind Series B Units at the election of the Partnership. The Series B Units were issued in a private placement in reliance upon an exemption from registration pursuant to Section 4(a)(2) of the Securities Act and the safe harbor provided by Rule 506 of Regulation D promulgated thereunder. On February 1, 2016, all outstanding Series B Units were converted on a one-for-one basis into common units.

Equity Offerings

In October 2015, the Partnership and certain of its affiliates entered into an agreement with a group of investment banks under which it may issue up to $100.0 million of its common units in at the market (“ATM”) offerings. During 2016, the Partnership issued 248,561 common units under this program resulting in net proceeds of $2.9 million after deducting related offering costs of $0.3 million. The net proceeds were used to repay amounts outstanding under the Credit Agreement. At December 31, 2016, $96.8 million remained available under the ATM program. There were no offerings under the ATM program in 2018 or 2017.

General Partner Units

In order to maintain its ownership percentage, we received proceeds of $0.1 million from our General Partner as consideration for the issuance of additional notional 16,326 general partner units for the year ended December 31, 2018, proceeds of $4.0 million from our General Partner as consideration for the issuance of additional notional 284,886 general partner units for the year ended December 31, 2017, and proceeds of $2.0 million from our General Partner as consideration for the issuance of 143,900 additional notional general partner units for the year ended December 31, 2016.

Distributions

Preferred Units

Under the Partnership’s agreement of limited partnership, the Partnership is obligated to pay cumulative distributions each quarter on the Series A preferred units (which consists of the Series A-1 and A-2) and Series C preferred units in an amount equal to the greater of $0.4125, or the distribution declared on the common units. As such, the distributions are accrued at each quarter-end (the “reporting quarter”) based on the subsequent Board approval of the distribution method (in the “subsequent quarter”), which may be settled in cash or paid-in-kind (“PIK”) units. To the extent the distribution is to be settled in cash, the distributions are accrued in the reporting quarter and the cash is paid in the subsequent quarter. To the extent the distribution is to be settled in PIK units, the distribution is recognized directly to equity in the reporting quarter.

Limited Partner Units (Common Units)

The following table reflects distributions declared and paid through December 31, 2018 (in thousands, except per unit data):
Date Declared
 
Distribution Payment Date
 
Period for which Distribution Relates
 
General Partner
 
Limited Partner
 
Total Cash Distributions
 
Cash Distributions Per Common Unit
October 25, 2018
 
November 14, 2018
 
Third Quarter of 2018
 
$
74

 
$
5,464

 
$
5,538

 
$
0.1031

July 27, 2018
 
August 14, 2018
 
Second Quarter of 2018
 
$
72

 
$
5,463

 
$
5,535

 
$
0.1031

April 26, 2018
 
May 15, 2018
 
First Quarter of 2018
 
$
287

 
$
21,853

 
$
22,140

 
$
0.4125

January 26, 2018
 
February 14, 2018
 
Fourth Quarter of 2017
 
$
290

 
$
21,745

 
$
22,035

 
$
0.4125



As a result of the Second Amendment, we are not permitted to declare or make any cash distributions to our unitholders until our consolidated total leverage ratio is reduced to less than 5.00:1.00, as shown in the compliance certificate required to be delivered together with audited consolidated financial statements for the most recently completed fiscal year and unaudited consolidated financial statements for the most recently completed quarter. Therefore, the Credit Agreement prohibited us from making any cash distributions on our common units with respect to the fourth quarter of 2018.

The minimum quarterly distribution, as defined in our partnership agreement, is $0.4125 per common unit per quarter, or $1.65 on an annualized basis. If, in any quarter, we distribute less than the minimum quarterly distribution on each common unit, then our common unitholders accumulate arrearages based on the number of initial public offering ("IPO") common units. We have 3.8 million IPO common units outstanding. The accumulated arrearages are equal to (a) the sum of the deficit between the quarterly distribution paid and the minimum quarterly distribution on all common units issued in our IPO (b) divided by the number of common units outstanding as of the end of such quarter. As we have more common units outstanding than were issued in the initial public offering, the arrearages associated with each common unit will be less than the deficit between the quarterly distribution paid on such common unit and the minimum quarterly distribution. Accumulated arrearages must be paid before any distribution will be made on our incentive distribution rights. As such, they give common unitholders a priority right to distributions, but, unlike arrearages on a debt instrument, do not create a liquidated payment obligation. At December 31, 2018, we had accumulated arrearages totaling $2.3 million.

During the years ended December 31, 2018, 2017 and 2016, we made the following distributions (in thousands):
 
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
Series A Units
 
 
 
 
 
 
Cash paid
 
$
13,625

 
$
8,354

 
$
4,935

Accrued (1)
 
3,983

 
3,767

 
5,260

Paid-in-kind
 
3,767

 
9,378

 
13,321

 
 
 
 
 
 
 
Series C Units
 
 
 
 
 
 
Cash paid
 
11,437

 
12,186

 
3,089

Accrued (1)
 
3,461

 
4,309

 
3,627

Paid-in-kind
 
4,309

 
2,844

 
2,772

 
 
 
 
 
 
 
Series D Units
 
 
 

 
 
Cash paid
 

 
2,887

 

Accrued (1)
 

 

 
963

 
 
 
 
 
 
 
Limited Partner's Units (2)
 
 
 
 
 
 
Cash paid
 
54,525

 
89,378

 
101,561

 
 
 
 
 
 
 
General Partner's Units (3)
 
 
 
 
 
 
Cash paid
 
723

 
3,488

 
2,551

Additional Blackwater acquisition consideration
 

 

 
5,000

 
 
 
 
 
 
 
Summary
 
 
 
 
 
 
Cash paid
 
80,310

 
116,293

 
112,136

Accrued (1)
 
7,444

 
8,076

 
9,850

Paid-in-kind
 
8,076

 
12,222

 
16,093

Additional Blackwater acquisition consideration
 

 

 
5,000


_______________________
(1)  
Can be paid in either Cash, PIK, or a combination of both. PIK payments on the Series C Units require consent of the holder.
(2) 
Limited Partner distributions do not include $21.7 million and $12.9 million of distributions declared in the fourth quarter of 2017 and 2016, respectively, which were distributed in the subsequent quarter.
(3) 
General Partner distributions do not include $0.3 million and $0.2 million of distributions declared in the fourth quarter of 2017 and 2016, respectively, which were distributed in the subsequent quarter.
     
Fair Value Determination of PIK of Preferred Units

The fair value of the paid-in-kind distributions was determined using the market and income approaches, requiring significant inputs which are not observable in the market and thus represent Level 3 measurements as defined by ASC 820. Under the income approach, the fair value estimates for all years presented were based on i) present value of estimated future contracted distributions, ii) option values ranging from $0.02 per unit to $3.86 per unit using a Black-Scholes model, iii) assumed discount rates ranging from 5.57% to 10.0% and iv) assumed growth rates of 1.0%.
v3.19.1
Net Loss per Limited Partner Unit
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Net Loss per Limited Partner Unit
Net Loss per Limited Partner Unit

As discussed in Note 4. Acquisitions, the JPE Merger on March 8, 2017 was a combination between entities under common control. As a result, prior periods were retrospectively adjusted to furnish comparative information. Accordingly, the prior period earnings combining both entities were allocated among our General Partner and common unitholders assuming JPE units were converted into our common units in the comparative historical periods.

Net income (loss) is allocated to the General Partner and the limited partners in accordance with their respective ownership percentages, after giving effect to distributions on our convertible preferred units and General Partner units, including any accrued arrearages. Unvested unit-based compensation awards that contain non-forfeitable rights to distributions (whether paid or unpaid) are classified as participating securities and are included in our computation of basic and diluted net limited partners' net income (loss) per common unit. Basic and diluted limited partners' net income (loss) per common unit is calculated by dividing limited partners' interest in net income (loss) by the weighted average number of outstanding limited partner units during the period.

The calculation of basic and diluted limited partners' net loss per common unit is summarized below (in thousands, except per unit amounts):
 
Years Ended December 31,
 
2018
 
2017
 
2016
Loss from continuing operations
$
(7,648
)
 
$
(262,601
)
 
$
(43,829
)
Net income attributable to noncontrolling interests
(116
)
 
(4,473
)
 
(2,766
)
Loss attributable to the Partnership
(7,764
)
 
(267,074
)
 
(46,595
)
 
 
 
 
 
 
Distributions on Series A Units
(17,608
)
 
(16,237
)
 
(19,138
)
Distributions on Series C Units
(14,898
)
 
(15,712
)
 
(9,487
)
Distributions on Series D Units

 
(1,925
)
 
(963
)
General partner's distributions
(434
)
 
(1,053
)
 
(2,550
)
General partner's share in undistributed loss
963

 
5,108

 
1,691

Loss attributable to Limited Partners
(39,741
)
 
(296,893
)
 
(77,042
)
Income (loss) from discontinued operations, including gain on sale

 
44,095

 
(4,715
)
Net loss attributable to Limited Partners
$
(39,741
)
 
$
(252,798
)
 
$
(81,757
)
 
 
 
 
 
 
Weighted average number of common units outstanding - Basic and diluted
53,136

 
52,043

 
51,176

 
 
 
 
 
 
Limited Partners' net loss per common unit - Basic and diluted
 
 
 
 
 
Loss from continuing operations
$
(0.75
)
 
$
(5.70
)
 
$
(1.51
)
Income (loss) from discontinued operations, including gain on sale

 
0.85

 
(0.09
)
Net loss per common unit
$
(0.75
)
 
$
(4.85
)
 
$
(1.60
)
 
_______________________
(1)  
Potential common unit equivalents are antidilutive for all periods. As a result, 24.1 million, 23.3 million and 23.8 million potential common unit equivalents for the years ended December 31, 2018, 2017 and 2016, respectively, have been excluded from the determination of diluted limited partners' net income per common unit.
v3.19.1
Incentive Compensation
12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Incentive Compensation
Incentive Compensation

Overview

Our General Partner manages our operations and activities and employs the personnel who provide support to our operation. Unit-based awards, which are available on a limited basis, or other types of incentive compensation such as our Defined Contribution Plan, which is available to all employees, are designed to retain, motivate and reward talented employees and key management personnel.

Unit-Based Compensation Plans

All equity-based awards issued under the Long-Term Incentive Plan consist of phantom units, distribution equivalent rights ("DER"), option grants or performance-based awards. DERs, options and performance-based awards have been granted on a limited basis. Future awards may be granted at the discretion of the Compensation Committee of our Board (the "Compensation Committee") and subject to approval by the Board.

On November 19, 2015, the Board approved the Third Amended and Restated Long-Term Incentive Plan to, among other things, increase the number of common units authorized for issuance by 6,000,000 common units. On February 11, 2016, the unitholders approved the Third Amended and Restated Long-Term Incentive Plan (as amended and in effect as of the date hereof, the "LTIP").

After March 8, 2017, pursuant to the JPE Merger, we assumed the JP Energy Partnership 2014 Long-Term Incentive Plan, which was renamed the American Midstream Partners, LP Amended and Restated 2014 Long Term Incentive Plan (the “Assumed LTIP”). As of December 31, 2018 and 2017, there were 151,845 common units available for awards under the Assumed LTIP, as adjusted to reflect the JPE Merger. We settle the existing awards made under the Assumed LTIP with the common units reserved under the Assumed LTIP. See JPE Unit-Based Compensation below for detailed information.

At December 31, 2018, 2017 and 2016, there were 3,958,593, 4,134,412 and 5,017,528 common units, respectively, available for future grants under the LTIP.

Phantom Unit Awards. Ownership in the phantom unit awards is subject to forfeiture until the vesting date. The LTIP is administered by the Compensation Committee, which at its discretion, may elect to settle such vested phantom units with a number of common units equivalent to the fair market value at the date of vesting in lieu of cash. Although our General Partner has the option to settle vested phantom units in cash, our General Partner has not historically settled these awards in cash. Under the LTIP, phantom units typically vest in increments of 25% on each grant anniversary date and do not contain any vesting requirements other than continued employment.

The following table summarizes activity in our phantom unit-based awards for the years ended December 31, 2018, 2017 and 2016 (in thousands, except per unit data):
 
 
Units
 
Weighted-Average Grant Date Fair Value Per Unit
 
Aggregate Intrinsic Value (1) 
Outstanding units at December 2015
 
569,759

 
$
13.15

 
$
4,609

Granted
 
1,374,226

 
2.14

 
 
Forfeited
 
(411,794
)
 
2.60

 
 
Vested
 
(286,348
)
 
12.18

 
 
Outstanding units at December 2016
 
1,245,843

 
$
4.72

 
$
22,674

LTIP associated with the acquired JPE phantom units(2)
 
312,992

 
15.73

 
 
Outstanding units at January 1, 2017
 
1,558,835

 
$
6.98

 
 
Granted
 
586,173

 
10.66

 
 
Forfeited
 
(136,053
)
 
10.52

 
 
Vested
 
(600,977
)
 
11.38

 
 
Outstanding units at December 2017
 
1,407,978

 
$
6.29

 
$
18,797

Granted
 
825,973

 
8.54

 
 
Forfeited
 
(461,338
)
 
7.24

 
 
Vested
 
(557,291
)
 
6.30

 
 
Outstanding units at December 2018(2)
 
1,215,322

 
$
7.46

 
$
3,682


_______________________
(1)  
The intrinsic value of phantom units was calculated by multiplying the closing market price of our underlying units on December 31, 2018, 2017, 2016 and 2015 by the number of phantom units.
(2)  
Including 808 of phantom units which remain outstanding from the Assumed LTIP.

The fair value of our phantom units, which are subject to equity classification, is derived from the fair value of our common units at the grant date. Fair value of phantom units is calculated based on either a) the market price of underlying units on the date of grant, less the estimated life time (vesting period)'s dividend distribution, if the phantom units have a restricted feature associated with the distribution or b) the market price of underlying units on the date of grant.

Compensation expense related to these phantom unit based awards for the years ended December 31, 2018, 2017 and 2016 was $3.4 million, $7.9 million and $3.6 million, respectively, and is included in Corporate expenses and Direct operating expenses in our Consolidated Statements of Operations and the Equity compensation expense in our Consolidated Statements of Changes in Equity, Partners' Capital and Noncontrolling Interests.

The total fair value of units at the time of vesting was $3.5 million, $9.8 million and $2.4 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Equity compensation expense related to unvested phantom awards not yet recognized at December 31, 2018 was $6.9 million and the weighted average period over which this expense is expected to be recognized as of December 31, 2018 is approximately 3.3 years.

Performance and Service Condition Awards. In November 2015, the Board modified awards that introduced certain performance and service conditions that were probable of being achieved, amounting to $2.0 million payable to certain employees. During the third quarter of 2016, we settled $1.0 million of the obligation in cash while in the fourth quarter of 2016, forfeitures reduced the total payable amount from $2.0 million to $1.5 million. Compensation expense related to these awards for the years ended December 31, 2018, 2017 and 2016 was under $0.1 million, $0.2 million and $0.9 million, respectively, and is included in Direct operating expenses in our Consolidated Statements of Operations.

Option to Purchase Common Units. In December 2015, the Board approved the grant of an option to purchase 200,000 common units at an exercise price per unit equal to $7.50. The grant vested on January 1, 2019, subject to acceleration in certain circumstances, and will expire on March 15th of the calendar year following the calendar year in which it completely vests or March 15, 2020.

In August 2016, the Board approved the grant of an option to purchase 30,000 common units at an exercise price per unit equal to $12.00. The grant will vest on July 31, 2019, subject to continued employment, and will expire on July 31st of the calendar year following the calendar year in which it vests.

In September 2016, the Board approved the grant of options to an executive to purchase 45,000 common units of the Partnership at an exercise price per unit equal to $13.88. The options were to vest at a rate of 25% per year and to expire on September 30th of the calendar year following the calendar year in which they completely vest. Such options were forfeited during 2017.

In April 2017, the Board approved the grant of options to purchase 15,000 common units of the Partnership at an exercise price per unit equal to $14.85. The options will vest over four years at a rate of 25% per year. The options will expire on April 30th of the calendar year following the calendar year in which they completely vest.

The Black-Scholes pricing model was used to determine the fair value of our option grants using the following assumptions:
 
Years Ended December 31,
 
2017
 
2016
Weighted average common unit price volatility
65.0
%
 
61.1
%
Expected distribution yield
11.1
%
 
12.6
%
Weighted average expected term (in years)
3.79

 
4.1

Weighted average risk-free rate
1.63
%
 
1.1
%


The weighted average unit price volatility was based upon the historical volatility of our common units. The expected distribution yield was based on an annualized distribution divided by the closing unit price on the date of grant. The risk-free rate was based on the U.S. Treasury yield curve in effect on the date of grant with a term equivalent to the vesting period.

Compensation expense related to these option awards was not material for the years ended December 31, 2018, 2017 and 2016, and unamortized costs related to unvested option awards was not material at December 31, 2018 and 2017.

The following table summarizes our option activity for the years ended December 31, 2018 and 2017:
 
 
Units
 
Weighted-Average Exercise Price
 
Weighted-Average Grant Date Fair Value per Unit
 
Aggregate Intrinsic Value (1) (In Thousands)
 
Weighted Average Remaining Contractual Life (Years)
Outstanding at December 31, 2016
 
275,000

 
$
9.03

 
$
0.96

 
$
2,522

 
5.0
Granted
 
15,000

 
14.85

 
3.69

 
 
 
 
Vested
 

 

 

 
 
 
 
Forfeited
 
(45,000
)
 
13.88

 
2.74

 
 
 
 
Outstanding at December 31, 2017
 
245,000

 
$
8.50

 
$
0.80

 
$
1,211

 
3.1
Granted
 

 

 

 
 
 
 
Vested
 
(3,750
)
 
14.85

 
3.69

 
 
 
 
Forfeited
 

 

 

 
 
 
 
Outstanding at December 31, 2018
 
241,250

 
$
8.40

 
$
0.76

 
$

 
0.2

_______________________
(1)  
The intrinsic value of the stock option is the amount by which the current market value of the underlying stock exceeds the exercise price (strike price) of the option. At December 31, 2018, the intrinsic value was zero.

Performance Based Awards. In November 2017, the Board approved the grant of 524,000 performance based awards ("PSUs") to create a highly accretive, long-term retention tool to key personnel whom management expects to drive performance over the long-term. The awards will vest on November 20, 2022, subject to acceleration in certain circumstances.

A Monte-Carlo pricing model was used to determine the fair value of our grants using the following assumptions:
 
December 31, 2017
Weighted average common unit price volatility (historical)
60.0
%
Expected distribution yield
13.15
%
Weighted average expected term (in years)
1 year to 5 years

Weighted average risk-free rate
1.6% to 2.1%



The following table summarizes our performance-based awards activity for the years ended December 31, 2018 and 2017:
 
 
Units
Outstanding units at December 2016
 

Granted
 
524,000

Outstanding units at December 2017
 
524,000

Forfeited
 
(124,000
)
Outstanding units at December 2018
 
400,000



The compensation expense related to these PSU awards for the years ended December 31, 2018 and 2017 was $0.9 million and $0.1 million, respectively. Compensation expense related to the unvested PSU awards not yet recognized was $3.8 million and $6.2 million as of December 31, 2018 and 2017, respectively.

JPE Unit-Based Compensation

Long-Term Incentive Plan and Phantom Units. The Assumed LTIP authorized grants of up to 3,642,700 common units. Phantom units issued under the Assumed LTIP were primarily composed of two types of grants: (1) service condition grants with vesting over three years in equal annual installments; and (2) service condition grants with cliff vesting on April 1, 2018. Distributions related to these unvested phantom units are paid concurrent with our distribution for common units. The fair value of phantom units issued under the Assumed LTIP was determined by utilizing the market value of our common units on the respective grant date.

As disclosed in Phantom Unit Awards above, the 312,992 phantom units outstanding as of December 31, 2016, under the Assumed LTIP were converted to phantom units under the LTIP.

As a result of the JPE Merger, certain JPE unit-based awards have been modified for JPE employees who stayed for the transition period. Such awards with a vest date of April 1, 2018 have been modified over the requisite service period to their respective target completion dates of April 8, 2017, May 31, 2017, July 14, 2017 or September 8, 2017. The incremental fair value of the modified awards which was recorded prospectively within 2017 was based on the conversion ratio (of JPE phantom units to the Partnership's units) multiplied by the Partnership's unit price on the date immediately preceding the acquisition date of March 8, 2017 of $16.45. The total fair value of JPE modified awards was approximately $1.5 million and was expensed in the year ended December 31, 2017.

Total unit-based compensation expense related to the Assumed LTIP was $1.7 million for the year ended December 31, 2016, which was recorded in Corporate expenses in our Consolidated Statements of Operations. The unit-based compensation expense related to the Assumed LTIP for the year ended December 31, 2017 was included in the total phantom unit-based compensation for the year ended December 31, 2017, as discussed in Phantom Unit Awards above.

Defined Contribution Plan

We have an employee savings plan (the "401(k) Plan") under Section 401(k) of the Internal Revenue Code of 1986, as amended, whereby employees of our General Partner may contribute a portion of their base compensation to the employee savings plan, subject to limits. We provide a matching contribution each payroll period equal to 100% of the employee's contribution up to the lesser of 6% of the employee's eligible compensation or $16,200 annually for the period. The matching contribution vests immediately upon eligibility, which is defined as first day of employment. As a result of the JPE Merger, the 401(k) Plan of JPE is included in our consolidated financial statements for the periods presented.

The following table summarizes information regarding contributions and the expense recognized for the matching contributions, which is included in operating and maintenance expense and general and administrative expense in our statements of operations (in thousands): 
 
 
For the year ended December 31,
 
 
2018
 
2017
 
2016
Matching contributions expensed for the 401(k) Plan
 
$
2,377

 
$
2,047

 
$
1,964



Cash Retention Plan

On September 2, 2018, the Partnership implemented a long-term cash retention award for all employees holding RSU’s under the Partnership’s LTIP. At each future vesting date of time-based unvested phantom units outstanding on July 28, a cash award in the amount of $6.00 per phantom unit will also be earned.  Outstanding PSU’s are not subject to the cash retention award. The expense associated with this award will be recognized over the service period.  For the year ended December 31, 2018, approximately $3.6 million related to this plan was included in Corporate expenses in the Consolidated Statements of Operations. At December 31, 2018, remaining unamortized expense was $5.1 million.
v3.19.1
Income Taxes
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
 Income Taxes

With the exception of our Marine Products, which was sold in the third quarter of 2018, the Partnership is not subject to U.S. federal or state income taxes as such income taxes are generally borne by our unitholders through the allocation of our taxable income (loss) to them. The state of Texas does impose a franchise tax that is assessed on the portion of our taxable margin, which is apportioned to Texas.

Income tax expense (benefit) for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands):
 
Years Ended December 31,
 
2018
 
2017
 
2016
Current income tax expense
$
39,697

 
$
1,317

 
$
523

Deferred income tax expense (benefit)
(6,702
)
 
(82
)
 
2,057

Total income tax expense
$
32,995

 
$
1,235

 
$
2,580

 
 
 
 
 
 
Effective income tax rate
130.2
%
 
(0.5
)%
 
(6.3
)%


A reconciliation of our expected income tax expense calculated at the U.S. federal statutory rate of 21% for the year ended December 31, 2018, and 34% for the years ended December 31, 2017 and 2016 to our actual tax expense is as follows (in thousands, except percentages):

 
Years Ended December 31,
 
2018
 
2017
 
2016
Gain (loss) from continuing operations before income taxes
$
25,347

 
$
(261,366
)
 
$
(41,249
)
US Federal statutory tax rate
21
%
 
34
%
 
34
%
Federal income tax expense (benefit) at statutory rate
5,323

 
(88,864
)
 
(14,025
)
Reconciling items:
 
 
 
 
 
    Partnership loss not subject to income tax benefit
15,038

 
89,711

 
15,800

    State and local tax expense
9,299

 
2,664

 
800

    Goodwill
3,415

 

 

    Rate change

 
(2,369
)
 

    Other
(80
)
 
93

 
5

Income tax expense
$
32,995

 
$
1,235

 
$
2,580



The Partnership’s deferred tax assets and liabilities as of December 31, 2018 and 2017 are summarized below (in thousands):
 
December 31,
 
2018
 
2017
Deferred tax assets:
 
 
 
    Net operating loss carryforwards
$

 
$
6,646

    Other

 
86

    Total deferred tax assets

 
6,732

Deferred tax liabilities:
 
 
 
    Property, plant and equipment
1,421

 
14,855

    Total deferred tax liabilities
$
1,421

 
$
14,855

 
 
 
 
Deferred income tax liability, net
$
(1,421
)
 
$
(8,123
)


On December 22, 2017, the United States enacted the Tax Act. Among a number of significant changes to the current U.S. federal income tax rules, the Tax Act reduces the marginal U.S. corporate income tax rate from 34 percent to 21 percent, limits the current deduction for net interest expense, limits the use of net operating losses to offset future taxable income and provides for full expense deduction for certain business capital expenditures for 2018 and subsequent years. The tax rates used in calculating deferred income taxes reflect the enacted tax law.

We recognize the tax benefits from uncertain tax positions if it is more likely than not that the position will be sustained on examination by the taxing authorities. As of December 31, 2018, we have not recognized tax benefits relating to uncertain tax positions.

The preparation of our income tax returns requires the use of management's estimates and interpretations which may be subjected to review by the respective taxing authorities and may result in an assessment of additional taxes, penalties and interest. Tax years subsequent to 2012 remain subject to examination by federal and state taxing authorities.
v3.19.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

Contingencies

Legal proceedings

While we are not currently party to any pending litigation or governmental proceedings that we believe are likely to materially affect our financial condition or results of operations, we are party to certain routine litigation and other proceedings incidental to the conduct of our business that could impact items required to be presented in our consolidated financial statements in a manner that may nonetheless be deemed quantitatively material for GAAP reporting purposes.  Moreover, the outcomes of these litigation matters may vary from management’s estimates or amounts that have previously been accrued or reserved.

American Midstream Permian, LLC ("AMP") and Ajax Resources, LLC (“Ajax”) were parties to a Gas Processing and Gathering Agreement, dated October 1, 2013, pursuant to which AMP’s Yellow Rose System gathered and processed Ajax’s production from its dedicated acreage in the Permian Basin (the "Ajax Agreement").  On June 13, 2016, the Partnership filed a Petition, Application for Temporary Restraining Order and Temporary Injunction in District Court for Harris County, Texas (the "Petition") seeking to enjoin Ajax from terminating the Ajax Agreement. On December 13, 2017, Ajax sent the Partnership a notice stating that following an audit conducted pursuant to the Ajax Agreement, it concluded that the Partnership underpaid Ajax during the period between January 2015 and May 2017, and Ajax requested that the Partnership pay for the alleged damages. On September 25, 2018, Ajax filed an answer and counterclaim to the Petition asserting that the Partnership breached the Ajax Agreement with Ajax and is seeking damages in the amount of $4.7 million plus attorneys’ fees. On October 23, 2018, AMP and Ajax agreed to settle this matter, and the Partnership made a $2.0 million payment to Ajax in exchange for Ajax’s release of all claims against the Partnership. On October 29, 2018, the court issued an order granting amended Joint Motion for Dismissal with Prejudice.
We are also currently a defendant and counter-claimant in litigation styled Rainbow Energy Marketing, Inc. v. American Midstream (Alabama Intrastate), LLC filed on April 12, 2017 in the  District Court, 157th Judicial District, in Harris County, Texas relating to a gas transportation agreement (the "Rainbow Agreement") between Rainbow Energy Marketing, Inc. (“Rainbow”) and American Midstream (Alabama Intrastate), LLC (“AMID AL”), one of our wholly-owned subsidiaries.  Rainbow filed a complaint alleging AMID AL breached the Rainbow Agreement and claiming damages of approximately $6.6 million, together with attorney's fees.  AMID AL filed a counterclaim, seeking to recover approximately $1.3 million in unpaid receivables under this agreement.  We believe the facts in this matter support our defense against Rainbow’s claim and our right to recover our unpaid receivables, and we intend to both vigorously defend and prosecute our rights in this matter. At December 31, 2018, we have not reserved for any portion of our unpaid receivables. 

Environmental matters

We are subject to federal and state laws and regulations relating to the protection of the environment. Environmental risk is inherent in our operations and we could, at times, be subject to environmental cleanup and enforcement actions. We attempt to manage this environmental risk through appropriate environmental policies and practices to minimize any impact our operations may have on the environment.

Exit and disposal costs

On March 9, 2016, management committed to a corporate headquarters relocation plan and communicated that plan to the impacted employees. The plan included relocation assistance or one-time termination benefits for employees who rendered service until their respective termination dates. Charges associated with these termination benefits, which totaled $9.1 million were recognized ratably over the requisite service period and are presented in Corporate expenses in our Consolidated Statements of Operations.

As part of the JPE Merger on March 8, 2017, management of JPE communicated to its employees a severance plan. The plan includes termination benefits in the form of severance and accelerated vesting of phantom units for employees who rendered service through their respective termination date. As of December 31, 2018, no liability remains related to this plan.

Commitments

The Partnership had the following non-cancelable contractual commitments as of December 31, 2018 (in thousands):

 
 
Total
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
3.77% Senior Notes
 
$
57,516

 
$
2,233

 
$
2,299

 
$
4,430

 
$
4,579

 
$
4,733

 
$
39,242

8.50% Senior Notes(1)
 
425,000

 

 

 
425,000

 

 

 

3.97% Secured Senior Notes
 
30,270

 
1,805

 
1,852

 
1,900

 
1,952

 
2,005

 
20,756

Revolving Credit Agreement
 
514,800

 
514,800

 

 

 

 

 

Interest payments on debt (2)
 
144,003

 
43,746


43,600


41,703


2,718


2,465


9,771

Operating lease obligations(3)
 
34,938

 
8,161

 
5,067

 
3,429

 
2,536

 
1,545

 
14,200

Asset retirement obligation(4)
 
71,297

 
3,846

 

 

 

 

 
67,451

Other(5)
 
125,495

 
2,795

 
2,828

 
2,686

 
2,404

 
2,441

 
112,341

Total
 
$
1,403,319


$
577,386


$
55,646


$
479,148


$
14,189


$
13,189


$
263,761

_______________________
(1)
Upon closing of the JPE Merger, the proceeds from the 8.50% Senior Notes were used to repay the JPE Credit Agreement. On December 28, 2017, the Partnership issued an additional $125 million 8.50% Senior Notes, as discussed in Note 14. Debt Obligations.
(2)
Excludes interest on our revolving credit agreement which had an outstanding balance of $514.8 million as of December 31, 2018 with a weighted average interest rate of 6.47%.
(3)  
Not including sublease income of $4.6 million.
(4) 
In certain cases, there is insufficient information to reasonably determine the timing and/or method of settlement for purposes of estimating the fair value of the ARO. In such cases, the ARO cost is considered indeterminate because there is no data or information that can be derived from past practice, industry practice, management's experience or the asset's estimated economic life.
(5)
Represents our commitment to certain long-term services contracts.

For the years ended December 31, 2018, 2017 and 2016, total rental expenses were $11.8 million, $12.6 million and $15.9 million, respectively. The reduction in rental expense observed in 2017 was primarily associated with our divested Propane Business.
v3.19.1
Related-Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related-Party Transactions
Related-Party Transactions

To the extent applicable, our discussion below includes the nature of our relationship and activities that we had with our Related Parties, as defined and required by ASC No. 850 – Related Party Disclosures, in the year ended December 31, 2018 and comparative periods, if applicable. Balances associated with our investments in unconsolidated affiliates are disclosed in Note 11. Investments in unconsolidated affiliates.

Blackwater Midstream Holdings, LLC

In December 2013, we acquired Blackwater Midstream Holdings, LLC (“Blackwater”) from an affiliate of ArcLight. The acquisition agreement included a provision whereby an ArcLight affiliate would be entitled to an additional $5.0 million of merger consideration based on Blackwater meeting certain operating targets. During the fourth quarter of 2018, we determined that the operating targets had been met and on December 10, 2018, we issued 810,517 common units to an affiliate of ArcLight, in addition to approximately $0.1 million in cash, as complete satisfaction of the earn-out obligation.

Republic Midstream, LLC

We charged Republic Midstream, LLC (“Republic”), an entity owned by ArcLight, a monthly fee of approximately $0.1 million through September 2017, the termination date of the services agreement with Republic. The monthly fee reduced the Corporate expenses in our Consolidated Statements of Operations by $1.0 million for the year ended December 31, 2017. As of December 31, 2018 and 2017, we had a receivable balance due from Republic of zero and $0.8 million, respectively.

We also performed certain management services for Republic in exchange for a monthly fee of approximately $75,000. In September 2016, this monthly fee decreased to approximately $40,000 before ceasing in November 2016. For the year ended December 31, 2016, we charged a yearly fee of $0.7 million to Republic for these services. During 2016, we performed crude transportation and marketing services for Republic. We charged $3.2 million for the year ended December 31, 2016, for these crude transportation and marketing services.

Truman Arnold Companies ("TAC")

As a result of our acquisition of the North Little Rock, Arkansas refined product terminal in November 2012, TAC owned common and subordinated units in the Partnership. In addition, Mr. Greg Arnold, President and CEO of TAC, was also a director of our General Partner and owned a 5% equity interest in our General Partner through October 2016. Our refined products terminals and storage segment sold refined products to TAC during 2016. For the year ended December 31, 2016, our revenue from TAC was $0.2 million.

The Partnership’s Propane Marketing Services segment, which was sold in third quarter of 2017, also purchased refined products from TAC. For the years ended December 31, 2016, the Partnership paid $1.0 million for refined product purchases from TAC.

Magnolia Infrastructure Holdings, LLC

On September 27, 2018, the Board received a non-binding proposal from Magnolia, pursuant to which Magnolia, or one of its affiliates, would acquire all common units of the Partnership that Magnolia and its affiliates do not already own in exchange for $6.10 per common unit.

On January 2, 2019, the Board received a revised non-binding proposal from Magnolia, pursuant to which Magnolia, or one of its affiliates, would acquire all common units of the Partnership that Magnolia and its affiliates do not already own for $4.50 per common unit. The decrease from $6.10 per common unit in the original offer is due to the decline in the U.S. financial, merger and acquisition, and commodity markets. For further discussion of the Pending Merger and Merger Agreement, see Note 25. Subsequent Events.

General Partner

During the years ended December 31, 2018 and 2017, our General Partner paid $31.8 million and $46.3 million, respectively, related to Corporate overhead support which was presented as part of the contribution line item in Cash flows from financing activities in our Consolidated Statements of Cash Flows. As of December 31, 2018 and 2017, we had $10.1 million and $6.5 million, respectively, of accounts payable due to our General Partner, which has been recorded in Accrued expenses and other current liabilities in our Consolidated Balance Sheets and relates primarily to compensation. This payable/receivable is generally settled on a quarterly basis.

Included in the $31.8 million of Corporate overhead support for the year ended December 31, 2018, discussed above, is $21.9 million related to the March 11, 2018, Capital Contribution Agreement (the “Capital Contribution Agreement”) between the Partnership and Magnolia to provide additional capital and overhead support to us during the first three quarters of 2018 in connection with temporary curtailment of production flows at Delta House. Pursuant to the Capital Contribution Agreement, Magnolia agreed to provide quarterly capital contributions, in an amount to be agreed, up to the difference between the actual cash distribution received by us on account of our interest in Delta House and the quarterly cash distribution expected to be received had the production flows to Delta House not been curtailed.

Additionally, ArcLight , which controls the General Partner of the Partnership, has confirmed its intent to provide financial support for the Partnership to maintain compliance with the covenants contained in the Credit Agreement through April 10, 2019. See further discussion in Note 14. Debt Obligations.

In connection with our acquisition of JPE on March 8, 2017, our General Partner agreed to provide quarterly financial support up to a maximum of $25.0 million. The financial support was to continue for eight (8) consecutive quarters following the closing of the acquisition, or earlier, until $25.0 million in support has been provided. As of December 31, 2017, we had utilized the full $25.0 million of the financial support and received $15.2 million. The remaining $9.8 million was received in the first quarter of 2018.

Separate from the financial support described above, an ArcLight affiliate agreed to reimburse us for some expenses associated with the JPE transaction. The total amounts reimbursed to us under this arrangement was $9.6 million for the year ended December 31, 2017, and was treated as a deemed contribution from ArcLight.

In addition, our General Partner also agreed to absorb $17.6 million corporate overhead expenses, which were incurred by and reimbursed to us in 2017. This amount plus the $15.2 million and $9.6 million received in relation to JPE related financial support and the $3.9 million received related to the General Partner’s ownership percentage for 2017, totaled approximately $46.3 million which was presented as part of the contribution line in Cash flows from financing activities in our Consolidated Statements of Cash Flows.

During the year ended December 31, 2016, our General Partner agreed to absorb $9.0 million of corporate overhead expenses incurred by us and not pass such expense through to us. We received reimbursements for these expenses from our General Partner in the quarters subsequent to when they were incurred, which was $7.5 million for the year ended December 31, 2016. In addition, ArcLight reimbursed the Partnership for expenses we incurred for the year ended December 31, 2016. The total amounts paid on our behalf or reimbursed to us were $2.4 million for the year ended December 31, 2016, and were treated as deemed contributions from ArcLight.

JP Development

JP Development provided crude oil pipeline transportation services to our Mid-Continent Business. As a result of utilizing JP Development’s pipeline transportation services during the year ended December 31, 2016, we incurred pipeline tariff fees of $0.4 million. On February 1, 2016, we sold certain trucking and marketing assets in the Mid-Continent area to JP Development. The sales price was $9.7 million; which included certain adjustments related to inventory and other working capital items. During the year ended December 31, 2016, our General Partner agreed to absorb $9.0 million of corporate overhead expenses incurred by us and not pass such expense through to us.

Transactions with our unconsolidated affiliates

Destin and Okeanos

On November 1, 2016, we became operator of the Destin and Okeanos pipelines and entered into operating and administrative management agreements under which the affiliates pay a monthly fee for general and administrative services provided by us. In addition, the affiliates reimburse us for certain transition related expenses. For the years ended December 31, 2018 and 2017, we recognized $2.6 million and $2.5 million, respectively, of management fee income. As of December 31, 2018 and 2017, we had an outstanding accounts receivable balance of less than $0.1 million and $0.9 million, respectively.

Delta House OGL

For the years ended December 31, 2018 and 2017, we recognized $0.8 million and $0.4 million, respectively, from Delta House OGL primarily from revenues generated under operating lease arrangements. We did not recognize any revenue during the year ended December 31, 2016. We had no outstanding accounts receivable balance from Delta House OGL related to these revenues as of December 31, 2018. As of December 31, 2017, we had outstanding accounts receivable of $0.3 million.

AmPan

Prior to August 8, 2017, AmPan was a 60%-owned subsidiary of ours which is consolidated for financial reporting purposes. Panther was the 40% non-controlling interest owner of AmPan. Pursuant to a related party agreement which began in the second quarter of 2016, POGS provided management services to AmPan in exchange for related fees, which in 2016 totaled $0.8 million of Direct operating expenses and $0.4 million of Corporate expenses in our Consolidated Statements of Operations. During January 1, 2017 to August 7, 2017, such management services totaled approximately $0.9 million of Direct operating expenses in our Consolidated Statements of Operations. Effective August 8, 2017, AmPan and POGS became our wholly-owned consolidated subsidiaries. See Note 4. Acquisitions.

Consolidated Asset Management Services, LLC ("CAMS")

Dan Revers, a director of our General Partner, indirectly owns in excess of 10% of CAMS, which, through various subsidiaries or affiliates, provides us pipeline integrity services and subleases an office space from us. During fiscal years 2018, 2017 and 2016, we incurred expenses from CAMS of $0.6 million, $0.4 million and $0.3 million, respectively. We received sublease income of less than $0.1 million for each of the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018 and 2017, we had an outstanding accounts payable balance of less than $0.1 million for both periods.

Other Related Party Transactions

Michael D. Rupe, the brother of Ryan Rupe (the Partnership’s Vice President - Natural Gas Services and Offshore Pipelines), is the Chief Financial Officer of CIMA Energy Ltd., a crude oil and natural gas marketing company (“CIMA”).  We regularly engage in purchases and sales of crude oil and natural gas with CIMA.  During fiscal years 2018, 2017 and 2016, we incurred expenses from CIMA of $3.7 million, $5.3 million and $4.3 million, respectively, and recognized revenue from CIMA of $2.4 million, $8.0 million and $3.6 million in connection with such transactions, respectively. As of December 31, 2018 and 2017, we had outstanding receivable balance of $0.1 million in both periods. As of December 31, 2018 and 2017, we had an outstanding accounts payable balance of $36,065 and zero, respectively.

During September and October 2017, we made payments on behalf of AMID Merger GP II, LLC related to the Propane Business sale totaling $2.5 million. As of December 31, 2018 and 2017, we had an outstanding accounts receivable balance of zero and $2.5 million, respectively.
v3.19.1
Supplemental Cash Flow Information
12 Months Ended
Dec. 31, 2018
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information
Supplemental Cash Flow Information

Supplemental cash flows and non-cash transactions consists of the following (in thousands):
 
Years Ended December 31,
 
2018
 
2017
 
2016
Supplemental cash flow information
 
 
 
 
 
Cash paid for interest, net of capitalized interest
$
79,767

 
$
65,038

 
$
22,303

Cash paid for income taxes
14,475

 
1,041

 
530

 
 
 
 
 
 
Supplemental non-cash information
 
 
 
 
 
Investing
 
 
 
 
 
Increase (decrease) in accrued property, plant and equipment purchases
$
(385
)
 
$
(3,553
)
 
$
8,533

Assets acquired under capital lease

 

 
139

Accrued contributions to unconsolidated affiliates
(89
)
 

 

Excess of carrying value of interest in Destin above consideration paid

 
278

 

Financing
 
 
 
 
 
Contributions from an affiliate holding limited partner interests
$

 
$
4,000

 
$
7,500

Acquisitions partially funded by the issuance of common units

 
12,532

 

Issuance of common units in connection with Blackwater Transactions
4,916

 

 

Issuance of Series C Units and Warrant in connection with the Emerald Transactions

 

 
120,000

Debt assumed in connection with the Trans-Union acquisition

 
32,453

 

Accrued cash distributions on convertible preferred units

 

 
7,103

Paid-in-kind distributions on convertible preferred units
7,444

 
17,565

 
14,446

Cancellation of escrow units

 

 
6,817

Accrued distributions to NCI holders

 
(1,342
)
 

Accrued distribution from an unconsolidated affiliate

 

 
5,000

v3.19.1
Reportable Segments
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments

During 2018, we operated our business through five reportable segments.

Gas Gathering and Processing Services. Our Gas Gathering and Processing Services segment provides “wellhead-to-market” services to producers of natural gas and NGLs, which include transporting raw natural gas from various receipt points through gathering systems, treating the raw natural gas, processing raw natural gas to separate the NGLs from the natural gas, fractionating NGLs and selling or delivering pipeline quality natural gas and NGLs to various markets and pipeline systems.

Liquid Pipelines and Services. Our Liquid Pipelines and Services segment provides transportation, purchase and sales of crude oil from various receipt points including lease automatic custody transfer (“LACT”) facilities and deliveries to various markets.

Natural Gas Transportation Services. Our Natural Gas Transportation Services segment transports and delivers natural gas from producing wells, receipt points or pipeline interconnects for shippers and other customers, which include local distribution companies (“LDCs”), utilities, industrial, commercial and power generation customers.

Offshore Pipelines and Services. Our Offshore Pipelines and Services segment gathers and transports natural gas and crude oil from various receipt points to other pipeline interconnects, onshore facilities and other delivery points.
Terminalling Services. Our Terminalling Services segment provided above-ground leasable storage services at our marine terminals that supported various commercial customers, including commodity brokers, refiners and chemical manufacturers to store a range of products, including petroleum products, distillates, chemicals and agricultural products.

During 2018, in order to improve operational alignment, we reorganized our reporting structure such that the operations of the following assets have been transferred between segments as follows:

our Cushing, Oklahoma assets have been moved from our Terminalling Services segment to our Liquid Pipelines and Services segment as a result of the dispositions of our Refined Products and Marine Products;
our AMID NGL Trucking (formerly part of AMID Liquids Trucking) asset has been moved from our Liquid Pipelines and Services segment to our Gas Gathering and Processing Services segment;
our Cayenne asset has been moved from our Offshore Pipelines and Services segment to our Liquid Pipelines and Services segment; and
our Chalmette System assets have been moved from our Natural Gas Transportation Services segment to our Offshore Pipelines and Services segment.

These reporting changes do not impact our previously reported consolidated financial results, but our prior period segment results have been recast to reflect the changes.

Subsequent to the dispositions of Refined Products and Marine Products, we eliminated the Terminalling Services segment and, we currently operate through the remaining four reportable segments. See further discussion of our dispositions in Note 5. Dispositions.

Segment Gross Margin

Our Chief Executive Officer serves as our Chief Operating Decision Maker and evaluates the performance of our reportable segments primarily on the basis of segment gross margin, which is our segment measure of profitability. We define segment gross margin for each segment as summarized below:

Gas Gathering and Processing Services total revenue plus unconsolidated affiliate earnings less unrealized gains (losses) on commodity derivatives, construction and operating management agreement income and less the cost of sales.

Liquid Pipelines and Services total revenue plus unconsolidated affiliate earnings less unrealized gains (losses) on commodity derivatives and construction and operating management agreement income less the cost of sales. Substantially all of our gross margin in this segment is fee-based or fixed-margin, with little to no direct commodity price risk.

Natural Gas Transportation Services total revenue plus unconsolidated affiliate earnings and construction and operating management agreement income less the cost of sales. Substantially all of our gross margin in this segment is fee-based or fixed-margin, with little to no direct commodity price risk.

Offshore Pipelines and Services – total revenue plus unconsolidated affiliate earnings less the cost of sales. Substantially all of our gross margin in this segment is fee-based or fixed-margin, with little to no direct commodity price risk.

Terminalling Services – total revenue less cost of sales and direct operating expense which includes direct labor, general materials and supplies and direct overhead.
 
The following tables set forth our segment financial information for the periods indicated (in thousands):
 
 
December 31, 2018
 
 
Gas Gathering and Processing Services
Liquid Pipelines and Services
Natural Gas Transportation Services
Offshore Pipelines and Services
Terminalling Services
Total
Revenue
 
$
175,597

$
450,515

$
59,663

$
72,180

$
45,363

$
803,318

Gains on commodity derivatives, net
 
311

1,725




2,036

Total revenue
 
175,908

452,240

59,663

72,180

45,363

805,354

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Cost of sales
 
124,379

423,519

23,207

8,050

12,885

592,040

Direct operating expenses
 




9,664

87,677

Corporate expenses
 
 
 
 
 
 
89,706

Termination fee
 
 
 
 
 
 
17,000

Depreciation, amortization and accretion expense
 
 
 
 
 
 
87,171

Gain on sale of assets, net
 
 
 
 
 
 
(95,118
)
Impairment of long-lived assets and intangible assets
 
 
 
 
 
 
1,610

          Total operating expenses
 
 
 
 
 
 
780,086

Operating income
 
 
 
 
 
 
25,268

Other income (expense), net:
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
 
 
 
 
 
 
(82,410
)
Other income (expense), net
 
 
 
 
 
 
560

Earnings in unconsolidated affiliates
 

11,954


69,975


81,929

Income from continuing operations before income taxes
 
 
 
 
 
 
25,347

Income tax expense
 
 
 
 
 
 
(32,995
)
Loss from continuing operations
 
 
 
 
 
 
(7,648
)
Net income attributable to non-controlling interests
 
 
 
 
 
 
(116
)
Net loss attributable to the Partnership
 
 
 
 
 
 
$
(7,764
)
 
 
 
 
 
 
 

Segment gross margin
 
$
51,888

$
40,542

$
36,130

$
134,106

$
22,814



 
 
December 31, 2017
 
 
Gas Gathering and Processing Services
Liquid Pipelines and Services
Natural Gas Transportation Services
Offshore Pipelines and Services
Terminalling Services
Total
Revenue
 
$
150,252

$
343,724

$
47,899

$
55,138

$
54,541

$
651,554

(Losses) gains on commodity derivatives, net
 
(340
)
221




(119
)
Total revenue
 
149,912

343,945

47,899

55,138

54,541

651,435

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Cost of sales
 
101,981

309,166

24,516

8,993

12,715

457,371

Direct operating expenses
 




11,871

82,256

Corporate expenses
 
 
 
 
 
 
112,058

Depreciation, amortization and accretion expense
 
 
 
 
 
 
103,448

Loss on sale of assets, net
 
 
 
 
 
 
(4,063
)
Impairment of long-lived assets and intangible assets
 
 
 
 
 
 
116,609

Impairment of goodwill
 
 
 
 
 
 
77,961

          Total operating expenses
 
 
 
 
 
 
945,640

Operating loss
 
 
 
 
 
 
(294,205
)
Other income (expenses), net:
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
 
 
 
 
 
 
(66,465
)
Other income, net
 
 
 
 
 
 
36,254

Earnings in unconsolidated affiliates
 

5,226


57,824


63,050

Loss from continuing operations before income taxes
 
 
 
 
 
 
(261,366
)
Income tax expense
 
 
 
 
 
 
(1,235
)
Loss from continuing operations
 
 
 
 
 
 
(262,601
)
Income from discontinued operations including gain on disposition
 
 
 
 
 
 
44,095

Net loss
 
 
 
 
 
 
(218,506
)
Net income attributable to non-controlling interests
 
 
 
 
 
 
(4,473
)
Net loss attributable to the Partnership
 
 
 
 
 
 
$
(222,979
)
 
 
 
 
 
 
 

Segment gross margin
 
$
48,053

$
39,870

$
23,005

$
103,970

$
29,956




 
 
December 31, 2016
 
 
Gas Gathering and Processing Services
Liquid Pipelines and Services
Natural Gas Transportation Services
Offshore Pipelines and Services
Terminalling Services
Total
Revenue
 
$
120,920

$
331,287

$
40,108

$
47,314

$
51,014

$
590,643

Losses on commodity derivatives, net
 
(833
)
(341
)

(7
)
(436
)
(1,617
)
Total revenue
 
120,087

330,946

40,108

47,307

50,578

589,026

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Cost of sales
 
68,955

288,735

21,288

3,049

11,324

393,351

Direct operating expenses
 




8,205

71,544

Corporate expenses
 
 
 
 
 
 
89,438

Depreciation, amortization and accretion expense
 
 
 
 
 
 
90,882

Loss on sale of assets, net
 
 
 
 
 
 
688

Impairment of long-lived assets and intangible assets
 
 
 
 
 
 
697

Impairment of goodwill
 
 
 
 
 
 
2,654

          Total operating expenses
 
 
 
 
 
 
649,254

Operating loss
 
 
 
 
 
 
(60,228
)
Operating income (expense), net:
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
 
 
 
 
 
 
(21,433
)
Other income
 
 
 
 
 
 
254

Earnings in unconsolidated affiliates
 

2,070


38,088


40,158

Loss from continuing operations before income taxes
 
 
 
 
 
 
(41,249
)
Income tax expense
 
 
 
 
 
 
(2,580
)
Loss from continuing operations
 
 
 
 
 
 
(43,829
)
Loss from discontinued operations, net of tax
 
 
 
 
 
 
(4,715
)
Net loss
 
 
 
 
 
 
(48,544
)
Net income attributable to non-controlling interests
 
 
 
 
 
 
(2,766
)
Net loss attributable to the Partnership
 
 
 
 
 
 
$
(51,310
)
 
 
 
 
 
 
 
 
Segment gross margin
 
$
50,040

$
44,161

$
18,616

$
82,346

$
31,050

 

Summarized in the table below is additional information per segment (in thousands):
 
December 31,
 
2018
 
2017
Segment assets:
 
Gas Gathering and Processing Services
$
400,052

 
$
407,814

Liquid Pipelines and Services
426,831

 
421,735

Natural Gas Transportation Services
271,890

 
268,122

Offshore Pipelines and Services
531,400

 
547,283

Terminalling Services

 
235,081

Other (1)
57,523

 
43,431

Total assets
$
1,687,696

 
$
1,923,466

 
 
 
 
Investment in unconsolidated affiliates:
 
 
 
Liquid Pipelines and Services
$
69,523

 
$
38,957

Offshore Pipelines and Services
268,273

 
309,477

Total investment in unconsolidated affiliates
$
337,796

 
$
348,434

___________________________
(1)
Other assets not allocable to segments consist of restricted cash, corporate leasehold improvements and other miscellaneous assets.

The following table sets forth capital expenditures for the years ended December 31, 2018 and 2017, by segment (in thousands):
 
Year Ended December 31,
 
2018
 
2017
Capital expenditures
 
 
 
Gas Gathering and Processing Services
$
35,131

 
$
15,689

Liquid Pipelines and Services
18,750

 
9,313

Natural Gas Transportation Services
4,726

 
35,498

Offshore Pipelines and Services
24,939

 
38,300

Terminalling Services 
6,819

 
8,443

Corporate
6,257

 
6,746

Total capital expenditures(1)
$
96,622

 
$
113,989

___________________________
(1)  
Capital expenditures exclude expenditures made for the Propane Business of $3.1 million for the year 2017, as the business was sold in 2017.
v3.19.1
Quarterly Financial Data (Unaudited)
12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)

Summarized unaudited quarterly financial data for 2018 and 2017 are as follows (in thousands, except per unit amounts): 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter (1)(2)(3)
Year Ended December 31, 2018 (4)
 
 
 
 
 
 
 
Total revenues
$
205,829

 
$
220,217

 
$
202,346

 
$
176,962

Operating (loss) income
(12,377
)
 
(7,641
)
 
67,164

 
(21,878
)
Net (loss) income from continuing operations, net of tax
(13,838
)
 
(17,274
)
 
38,183

 
(14,719
)
Net income attributable to noncontrolling interest
45

 
13

 
25

 
33

Net (loss) income attributable to the Partnership
(13,883
)
 
(17,287
)
 
38,158

 
(14,752
)
General Partner's Interest in net (loss) income
(181
)
 
(225
)
 
504

 
(199
)
Limited Partners' Interest in net (loss) income
$
(13,702
)
 
$
(17,062
)
 
$
37,654

 
$
(14,553
)
 
 
 
 
 
 
 
 
Limited Partners' (loss) income per unit:
 
 
 
 
 
 
 
(Loss) income from continuing operations
$
(0.42
)
 
$
(0.48
)
 
$
0.56

 
$
(0.41
)
Net (loss) income
$
(0.42
)
 
$
(0.48
)
 
$
0.56

 
$
(0.41
)
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
 
 
Total revenues
$
164,078

 
$
162,030

 
$
162,290

 
$
163,037

Operating loss
(24,457
)
 
(25,574
)
 
(20,616
)
 
(223,558
)
Net (loss) income from continuing operations, net of tax
(28,171
)
 
(25,901
)
 
11,806

 
(220,335
)
(Loss) income from discontinued operations, net of tax
(710
)
 
(1,801
)
 
44,696

 
1,910

Net income attributable to noncontrolling interest
1,303

 
1,462

 
621

 
1,087

Net (loss) income attributable to the Partnership
(30,184
)
 
(29,164
)
 
55,881

 
(219,512
)
General Partner's Interest in net (loss) income
(420
)
 
(375
)
 
697

 
(2,883
)
Limited Partners' Interest in net (loss) income
$
(29,764
)
 
$
(28,789
)
 
$
55,184

 
$
(216,629
)
 
 
 
 
 
 
 
 
Limited Partners' (loss) income per unit:
 
 
 
 
 
 
 
(Loss) income from continuing operations
$
(0.74
)
 
$
(0.69
)
 
$
0.05

 
$
(4.32
)
(Loss) income from discontinued operations
(0.01
)
 
(0.03
)
 
0.86

 
0.03

Net (loss) income
$
(0.75
)
 
$
(0.72
)
 
$
0.91

 
$
(4.29
)
_______________________ 
(1) 
We recognized no goodwill impairment charges in 2018. We recognized goodwill impairment charges of $78.0 million in the fourth quarter of 2017. See Note 10. Goodwill and Intangible Assets, Net for more information.
(2) 
We recognized asset impairment charges of $1.6 million and $116.6 million in the fourth quarters of 2018 and 2017, respectively. The $1.6 million impairment charges in 2018 are related to our property, plant and equipment, as discussed in Note 9. Property, Plant and Equipment. Of the $116.6 million impairment charges in 2017, $103.9 million are related to our property, plant and equipment and $12.7 million are related to intangible assets, as discussed in Note 9. Property, Plant and Equipment and Note 10. Goodwill and Intangible Assets, Net.
(3) 
Total revenues and cost of sales for the fourth quarter of 2017 have been reduced by approximately $13.7 million primarily due to an out-of-period adjustment recorded during the quarter related to an error in gross versus net revenue recognition.  This adjustment did not have a material impact to revenue for any prior quarters and had no impact to operating loss, net income (loss) or segment margin for any period.
(4) 
Total revenues and cost of sales for the first quarter of 2018 are overstated by approximately $10.0 million due to an error in gross versus net revenue recognition. Total revenues for the fourth quarter of 2018 have been reduced by approximately $10.0 million to correct this error out-of-period. This adjustment did not have an impact to operating (loss) income, net income (loss) or segment gross margin for any period.
In addition, net (loss) from continuing operations, net of tax for the fourth quarter of 2018 has been reduced by approximately $7.8 million primarily due to an out-of-period adjustment recorded during the quarter related to an error in recording earnings in unconsolidated affiliates. This adjustment did not have a material impact to net income (loss) or segment gross margin for any period and had no impact to revenue or operating (loss) income.
v3.19.1
Subsequent Event
12 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
Subsequent Event
Subsequent Events

Merger Agreement

On March 17, 2019, we entered into the Merger Agreement with our General Partner, Proposed Parent, Proposed Merger Sub, and HPIP providing for the Proposed Merger. Upon the terms and subject to the conditions set forth in the Merger Agreement, the separate existence of Proposed Merger Sub will cease and the Partnership will survive and continue to exist as a Delaware limited partnership and direct subsidiary of our General Partner and Proposed Parent. If the Pending Merger is completed, each common unit outstanding immediately prior to the effective time of the Pending Merger, other than those held by Proposed Parent and its affiliates, will be converted into the right to receive $5.25 in cash, to be paid without interest and reduced by any applicable tax withholding. Upon completion of the transactions contemplated by the Merger Agreement, we will continue to exist as a limited partnership, but will no longer have publicly listed or traded units.

Under the Partnership Agreement, the Pending Merger is required to be approved by a majority of the outstanding common units and preferred units, voting as a class, and each class of preferred units. Affiliates of ArcLight own approximately 51% of such voting power and prior to the execution of the Merger Agreement, affiliates of ArcLight delivered to the Partnership a written consent approving the Pending Merger. As such, the Pending Merger has been approved by the limited partners of the Partnership, and the Partnership will not hold a meeting of its unitholders to approve the merger.

Credit Agreement Waiver

We entered into a Letter Agreement (the "Waiver"), effective as of March 26, 2019, with a syndicate of lenders and Bank of America, N.A., as administrative agent, to waive certain covenants contained in the Credit Agreement that (i) require us to provide audited financial statements that are not subject to any “going concern” or like qualification or exception, or any qualification or exception as to the scope of such audit and (ii) limit our ability to report the existence of a material weakness in the Partnership's internal control over financial reporting (the “Financial Statements Audit Requirement”). Additionally, the Waiver extends the deadline under the Credit Agreement by which we are required to deliver to the administrative agent certain financial statements (the "Financial Statements Delivery Deadline"). Under the terms and conditions set forth in the Waiver, certain lenders (as required in our Credit Agreement) agreed to extend the Financial Statements Delivery Deadline to April 30, 2019.

As the renewal or refinance of the Credit Agreement remains uncertain, the audited financial statements contained in this Form 10-K include a note regarding our ability to continue as a going concern. Prior to our entry into the Waiver, the existence of this going concern qualification in our audited financial statements would have constituted an event of default under the Credit Agreement. Pursuant to the Waiver, the administrative agent and certain lenders (as required by the Credit Agreement) have waived the Financial Statements Audit Requirement for the fiscal year ended December 31, 2018. Although we entered into the Waiver to address the event of default otherwise arising pursuant to the existence of a going concern note and material weakness exception in our audited financial statements contained in this Form 10-K, there is no guarantee that our lenders will agree to waive events of default or potential events of default in the future.
v3.19.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of business
Nature of business

We provide critical midstream infrastructure that links producers of natural gas, crude oil, NGLs, condensate and specialty chemicals to numerous intermediate and end-use markets. During 2018, we operated through five reportable segments: (i) Gas Gathering and Processing Services, (ii) Liquid Pipelines and Services, (iii) Natural Gas Transportation Services, (iv) Offshore Pipelines and Services and (v) Terminalling Services. For further discussion of our reporting segments see Note 23. Reportable Segments.

Our primary assets are strategically located in some of the most prolific onshore and offshore producing regions and key demand markets in the United States. Our gathering and processing assets are primarily located in (i) the Permian Basin of West Texas, (ii) the Cotton Valley/Haynesville Shale of East Texas, (iii) the Eagle Ford Shale of South Texas, (iv) the Bakken Shale of North Dakota and (v) offshore in the Gulf of Mexico. Our transmission assets are in key demand markets in Oklahoma, Alabama, Arkansas, Louisiana, Mississippi and Tennessee.

Basis of presentation
Basis of presentation

As discussed in Note 4. Acquisitions, we acquired JP Energy Partners LP ("JPE") in a unit-for-unit exchange on March 8, 2017. As both the Partnership and JPE were controlled by ArcLight affiliates, the acquisition represented a transaction among entities under common control. Although the Partnership was the legal acquirer, JPE was considered the acquirer for accounting purposes as ArcLight obtained control of JPE on April 15, 2013 before it obtained control of the Partnership. The accompanying consolidated financial statements represent the JPE historical cost basis consolidated financial statements retrospectively adjusted to reflect its acquisition of the Partnership at ArcLight's historical cost bases effective April 15, 2013, the date on which ArcLight obtained control of the Partnership.
Transactions between entities under common control
Transactions between entities under common control
 
We may enter into transactions with ArcLight affiliates whereby we receive midstream assets or other businesses in exchange for cash or Partnership equity. As the transactions are between entities under common control we account for the net assets acquired at the affiliate's historical cost basis, whether the transactions are considered assets or business acquisitions. In certain cases, our historical consolidated financial statements will be revised to include the results attributable to the assets acquired from the later of April 15, 2013 (the date Arclight affiliates obtained control of our General Partner) or the date the ArcLight affiliates obtained control of the assets or business acquired.
Consolidation policy
Consolidation policy

The accompanying consolidated financial statements include accounts of American Midstream Partners, LP, and its controlled subsidiaries. All significant inter-company accounts and transactions have been eliminated in the preparation of the accompanying consolidated financial statements.
Going concern assessment and management's plans
Going Concern Assessment and Management’s Plans

Pursuant to FASB ASC 205-40, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern, we are required to assess our ability to continue as a going concern for a period of one year from the date of the issuance of these consolidated financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. As discussed in Note 14. Debt Obligations, our Credit Agreement matures on September 5, 2019 and has not been renewed as of the date of the issuance of these consolidated financial statements.

As discussed in Note 21. Related Party Transactions, the Board received a non-binding proposal from Magnolia, an affiliate of ArcLight to acquire the common units that it does not already own. On March 17, 2019, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Anchor Midstream Acquisition, LLC, a Delaware limited liability company (“Proposed Parent”), Anchor Midstream Merger Sub, LLC, a Delaware limited liability company (“Proposed Merger Sub”), and High Point Infrastructure Partners, LLC, a Delaware limited liability company (“HPIP”), pursuant to which Proposed Merger Sub will merge with and into the Partnership, with the Partnership surviving as a direct wholly owned subsidiary of our General Partner and Proposed Parent (the “Pending Merger”). We expect the Pending Merger to close in the second quarter of 2019. As the Merger Agreement is subject to customary closing conditions and because the Pending Merger may affect how, or if, the Partnership elects to obtain a maturity extension, management has deferred finalization of a renewal of the Credit Agreement.

While we intend to renew or extend the terms of our Credit Agreement, until such time as we have executed an agreement to refinance or extend the maturity of our Credit Agreement, we cannot conclude that it is probable we will do so, and accordingly, this raises substantial doubt about our ability to continue as a going concern.

As the renewal or refinance of the Credit Agreement remains uncertain, the audited financial statements contained in this Form 10-K include a note regarding our ability to continue as a going concern. Prior to our entry into the Waiver, the existence of this going concern qualification in our audited financial statements would have constituted an event of default under the Credit Agreement. Pursuant to the Waiver, the administrative agent and certain lenders (as required by the Credit Agreement) have waived the Financial Statements Audit Requirement for the fiscal year ended December 31, 2018. Although we entered into the Waiver to address the event of default otherwise arising pursuant to the existence of a going concern note and material weakness exception in our audited financial statements contained in this Form 10-K, there is no guarantee that our lenders will agree to waive events of default or potential events of default in the future.
Use of estimates
Use of estimates

When preparing consolidated financial statements in conformity with U.S. GAAP, management must make estimates and assumptions based on information available at the time. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, as well as the disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. Estimates and assumptions are based on information available at the time such estimates and assumptions are made. Adjustments made with respect to the use of these estimates and assumptions often relate to information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of consolidated financial statements. Estimates and assumptions are used in, among other things, i) estimating unbilled revenues, product purchases and operating and general and administrative costs, ii) developing fair value assumptions, including estimates of future cash flows and discount rates, iii) analyzing long-lived assets, goodwill and intangible assets for possible impairment, iv) estimating the useful lives of assets and v) determining amounts to accrue for contingencies, guarantees and indemnifications. Actual results, therefore, could differ materially from estimated amounts.
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash

We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value because of the short term to maturity for these investments. From time to time we are required to maintain cash in separate accounts the use of which is restricted by the terms of our debt agreements or asset retirement obligations. Such amounts are included in Restricted cash in our Consolidated Balance Sheets.
Inventory
Inventory

Inventory, which is mainly comprised of crude oil, refined products and NGLs, is stated at the lower of cost or net realizable value. Cost of refined products and NGLs inventory is determined using the first-in, first-out (FIFO) method and the cost of crude oil inventory is determined using the weighted-average method.

Allowance for doubtful accounts
Allowance for doubtful accounts

We establish provisions for losses on accounts receivable when we determine that we will not collect all or part of an outstanding balance. Collectability is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method.
Derivative financial instruments
Derivative financial instruments

Our net income (loss) and cash flows are subject to volatility stemming from changes in interest rates on our variable rate debt, commodity prices and fractionation margins (the relative difference between the price we receive from NGL sales and the corresponding cost of natural gas purchases). In an effort to manage the risks to unitholders, we may use a variety of derivative financial instruments such as swaps, collars, interest rate caps or forward contracts to create offsetting positions to specific commodity or interest rate exposures. We record all derivative financial instruments in our Consolidated Balance Sheets at fair value as current and long-term assets or liabilities on a net basis by counterparty. We record changes in the fair value of our commodity derivatives in Gains (losses) on commodity derivatives, net while changes in the fair value of our interest rate swaps are included in Interest expense, net of capitalized interest in our Consolidated Statements of Operations.

Our hedging program provides a control structure and governance for our hedging activities specific to identified risks and time periods, which are subject to the approval and monitoring by the board of directors of our General Partner ("the Board"). We employ derivative financial instruments in connection with an underlying asset, liability or anticipated transaction, and we do not use derivative financial instruments for speculative or trading purposes.

The price assumptions we use to value our derivative financial instruments can affect our net income (loss) each period. We use published market price information where available, or quotations from over-the-counter, market makers to find executable bids and offers. The valuations also reflect the potential impact of related conditions, including credit risk of our counterparties. The amounts reported in our consolidated financial statements change quarterly as these valuations are revised to reflect actual results, changes in market conditions or other factors, many of which are beyond our control.

We are also a party to a number of contracts that have elements of a derivative instrument. These contracts are primarily forward purchase and sales contracts with counterparties. Although many of these contracts have the requisite elements of a derivative instrument, these contracts qualify for the normal purchase and normal sales exception because they provide for the delivery of products or services in quantities that are expected to be used in the normal course of operating our business and the price in the contract is directly associated with the price of the product or service being purchased or sold. As a result, these contracts are not recorded in our consolidated financial statements until they are settled.
Fair value measurements
Fair value measurements

We apply the authoritative accounting provisions for measuring the fair value of our derivative financial instruments and disclosures associated with our outstanding indebtedness. We define fair value as an exit price representing the expected amount we would receive when selling an asset or pay to transfer a liability in an orderly transaction with market participants at the measurement date.

We use various assumptions and methods in estimating the fair values of our financial instruments. The carrying value of all non-derivative financial instruments included in current assets (including cash, cash equivalents, restricted cash and accounts receivable) and current liabilities (including accounts payable but excluding short-term debt) approximates the applicable fair value due to the short maturity of those instruments.

We employ a hierarchy which prioritizes the inputs we use to measure recurring fair value into three distinct categories based upon whether such inputs are observable in active markets or unobservable. We classify assets and liabilities in their entirety based on the lowest level of input that is significant to their fair value measurement. Our methodology for categorizing assets and liabilities that are measured at fair value pursuant to this hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest level to unobservable inputs as outlined below:

Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and
Level 3 – Inputs are unobservable and considered significant to fair value measurement.

We utilize a mid-market pricing convention, or the "market approach," for valuation for assigning fair value to our derivative assets and liabilities. Our credit exposure for over-the-counter derivatives is directly tied to our counterparty and continues until the maturity or termination of the contracts. As appropriate, valuations are adjusted for various factors such as credit and liquidity considerations.
Property, plant and equipment
Property, plant and equipment

We capitalize expenditures related to property, plant and equipment that have a useful life greater than one year. We also capitalize expenditures that improve or extend the useful life of an asset. Maintenance and repair costs, including any planned major maintenance activities, are expensed as incurred.

We record property, plant and equipment at cost and recognize depreciation expense on a straight-line basis over the related estimated useful lives of the assets which range from 3 to 40 years. Our determination of the useful lives of property, plant and equipment requires us to make various assumptions, including the supply of and demand for hydrocarbons in the markets served by our assets, normal wear and tear of the facilities and the extent and frequency of maintenance programs.

We classify long-lived assets to be disposed of through sales that meet specific criteria as held for sale. We cease depreciating those assets effective on the date the asset is classified as held for sale. We record those assets at the lower of their carrying value or the estimated fair value less the cost to sell. Until the assets are disposed of, our estimate of fair value is re-determined when related events or circumstances change.
Impairment of long lived Assets
Impairment of long lived assets

We evaluate the recoverability of our property, plant and equipment and intangible assets with definite lives when events or circumstances indicate we may not recover the carrying amount of the assets. We continually monitor our operations, the market and business environment to identify indicators that could suggest an asset or asset group may not be recoverable. We evaluate the asset or asset group for recoverability by estimating the undiscounted future cash flows expected to be derived from their use and disposition. These cash flow estimates require us to make projections and assumptions for many years into the future for pricing, demand, competition, operating cost, contract renewals and other factors. An asset or asset group is considered impaired when the estimated undiscounted cash flows are less than the carrying amount. In that event, an impairment loss is recognized to the extent that the carrying amount of the asset or asset group exceeds its fair value as determined by quoted market prices in active markets or present value techniques. The determination of fair values using present value techniques requires us to make projections and assumptions regarding future cash flows and weighted average cost of capital. Any changes we make to these projections and assumptions could result in significant revisions to our evaluation of the recoverability of our property, plant and equipment and the recognition of an impairment loss in our consolidated statements of operations.
Goodwill impairment and intangible assets
Goodwill impairment

We record goodwill for the excess of the cost of an acquisition over the fair value of the net assets of the acquired business. Goodwill is reviewed for impairment at least annually, as of October 1st of each year, or more frequently if an event or change in circumstance indicates that an impairment may have occurred. We first assess qualitative factors to evaluate whether it is more likely than not that an impairment has occurred, and it is therefore necessary to perform the one-step quantitative goodwill impairment test. If the one-step quantitative goodwill impairment test indicates that the goodwill is impaired, an impairment loss is recorded, which is the difference between the carrying value of the reporting unit to its fair value, with the impairment loss not to exceed the amount of goodwill recorded.

When performing a quantitative impairment test, we generally determine the fair value of our reporting units ("RU") using a discounted cash flow method. In the event we enter into an agreement to sell all or substantially all of an RU, we will utilize such information. While using the discounted cash flow method, we must make estimates of projected cash flows related to assets, which include, but are not limited to, assumptions about revenue growth rates, operating margins, weighted average costs of capital and future market conditions, the use or disposition of assets, estimated remaining life of assets and future expenditures necessary to maintain current operations. We also must make certain estimates and assumptions, including, among other things, changes in general economic conditions in regions in which our markets are located, the availability and prices of energy commodities (such as natural gas, crude oil and refined products), our ability to negotiate favorable sales agreements, the risks that natural gas exploration and production activities will not occur or be successful, our dependence on certain significant customers and producers of natural gas and competition from other companies. The fair value is estimated using the income approach based on significant inputs not observable in the market and thus represent a Level 3 measurement.

Under the discounted cash flow method, we determine fair value based on estimated future cash flows and earnings before interest, income tax, depreciation and amortization (“EBITDA”) of each RU including estimates for capital expenditures, discounted to present value using the risk-adjusted industry rate, which reflects the overall level of inherent risk of an RU. Cash flow projections are derived from one-year budgeted amounts and five-year operating forecasts plus an estimate of later period cash flows, all of which are evaluated by management. Subsequent period cash flows are developed for each RU using growth rates that management believes are reasonably likely to occur. The annual budget process is typically completed near the annual goodwill impairment testing date, and management uses the most recent information for the annual impairment tests. The forecast is also subjected to a comprehensive update annually in conjunction with the annual budget process and is revised periodically to reflect new information and revised expectations.

The estimates of future cash flows and EBITDA are subjective in nature and are subject to impacts from our business risks. While we believe we have made reasonable estimates and assumptions based on available information to calculate the fair value, if future results are not consistent with our estimates, changes in fair value estimates could result in additional impairments in future periods that could be material to our results of operations.

Intangible assets

We record the estimated fair value of acquired customer contracts, relationships and dedicated acreage agreements as intangible assets. These intangible assets have definite lives and are subject to amortization on a straight-line basis over their economic lives, currently ranging between 5 and 30 years. We assess intangible assets for impairment together with related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Investment in unconsolidated affiliates
Investment in unconsolidated affiliates

We hold membership interests in entities that own and operate natural gas pipeline systems and NGL and crude oil pipelines in and around Louisiana, Alabama, Mississippi and the Gulf of Mexico. While we have significant influence over these entities, we do not control them and therefore, they are accounted for using the equity method and are reported in Investment in unconsolidated affiliates in our Consolidated Balance Sheets. We evaluate the recoverability of these investments on a regular basis and recognize impairment write downs if we determine a loss in value represents an other-than-temporary-decline. The unconsolidated affiliates that were determined to be variable interest entities (“VIE”) due to disproportionate economic interests and decision making rights were further evaluated under the VIE method of consolidation. In each case, we lack the power to direct the activities that most significantly impact the unconsolidated affiliate’s economic performance. Therefore, as we do not hold a controlling financial interest in these affiliates, we account for our related investments using the equity method. In each case, we are not obligated to absorb losses greater than our proportional ownership percentages. We have joint venture arrangements in which we and our partners share proportional ownership and responsibilities and receive returns in accordance with our ownership percentage.
Deferred financing costs
Deferred financing costs

Costs incurred in connection with our revolving credit facilities are deferred and charged to interest expense over the term of the related credit agreement. Such amounts are included in Other assets, net in our Consolidated Balance Sheets. Costs incurred in connection with our long-term debt such as the 8.50% Senior Notes and 3.77% Senior Notes are also deferred and charged to interest expense over the respective term of the agreements; however, these amounts are reflected as a reduction of the related obligation. Gains or losses on debt repurchases or extinguishment include any associated unamortized deferred financing costs.
Asset retirement obligations
Asset retirement obligations

Asset retirement obligations ("ARO") are legal obligations associated with the retirement of tangible long-lived assets that result from the asset's acquisition, construction, development and operation. An ARO is initially measured at its estimated fair value. Upon initial recognition, we also record an increase to the carrying amount of the related long-lived asset. We depreciate the asset using the straight-line method over the period during which it is expected to provide benefits. After initial recognition, we revise the ARO to reflect the passage of time and for changes in the estimated amount or timing of cash flows.

We have legal obligations requiring us to decommission our offshore pipeline systems at retirement. In certain rate jurisdictions, we are permitted to include annual charges for removal costs in the regulated cost of service rates we charge our customers. Additionally, legal obligations exist for certain of our onshore right-of-way agreements due to requirements or landowner options to compel us to remove the pipe at final abandonment. Sufficient data exists with certain onshore pipeline systems to reasonably estimate the cost of abandoning or retiring a pipeline system. However, in some cases, there is insufficient information to reasonably determine the timing and/or method of settlement for purposes of estimating the fair value of the ARO. In these cases, the ARO cost is considered indeterminate because there is no data or information that can be derived from past practice, industry practice, management's experience or the asset's estimated economic life. The useful lives of most pipeline systems are primarily derived from available supply resources and ultimate consumption of those resources by end users. Variables can affect the remaining lives of the assets which preclude us from making a reasonable estimate of the ARO. Indeterminate ARO costs will be recognized in the period in which sufficient information exists to reasonably estimate potential settlement dates and methods.
Commitments, contingencies and environmental liabilities
Commitments, contingencies and environmental liabilities

We expense or capitalize, as appropriate, expenditures for ongoing compliance with environmental regulations that relate to past or current operations. We expense amounts we incur from the remediation of existing environmental contamination caused by past operations that do not benefit future periods by preventing or eliminating future contamination. We record liabilities for environmental matters when assessments indicate that remediation efforts are probable and the costs can be reasonably estimated. Estimates of environmental liabilities are based on currently available facts, existing technology and presently enacted laws and regulation taking into consideration the likely effects of inflation and other factors. These amounts also take into account our prior experience in remediating contaminated sites, other companies' clean-up experience and data released by government organizations. Our estimates are subject to revision in future periods based on actual cost or new information. We evaluate recoveries from insurance coverage separately from the liability and, when recovery is probable, we record an asset separately from the associated liability in our consolidated financial statements.

We recognize liabilities for other commitments and contingencies when, after fully analyzing the available information, we determine it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. When a range of probable loss can be estimated, we accrue the most likely amount, or if no amount is more likely than another, we accrue the minimum of the range of probable loss. We expense legal costs associated with loss contingencies as such costs are incurred.
Noncontrolling interests
Noncontrolling interests

Noncontrolling interests represent the minority interest holders' proportionate share of the equity in certain of our consolidated subsidiaries and are adjusted for the minority interest holders' proportionate share of the subsidiaries' earnings or losses each period.
Revenue recognition
Revenue recognition

Our revenue is derived from the provision of gathering, processing, transportation, terminalling and storage services and the sale of commodities primarily to marketers and brokers, refiners and chemical manufacturers, utilities and power generation customers, industrial users and local distribution companies. Services revenue also includes revenues generated through operating lease arrangements.

Beginning on January 1, 2018, we account for revenue from contracts with customers in accordance with Topic 606. The unit of account in Topic 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided at a point in time or over a period of time. Topic 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied. See Note 2. Recent Accounting Pronouncements, for further discussion regarding our January 1, 2018 implementation of the new Revenue Recognition guidance.

Cost of sales

Cost of sales represent the cost of commodities purchased for resale or obtained in connection with certain of our customer revenue arrangements. These costs do not include an allocation of depreciation expense or direct operating costs.
Corporate expenses
Corporate expenses

Corporate expenses include compensation costs for executives and administrative personnel, professional service fees, rent expense and other general and administrative expenses and are recognized as incurred.
Operational balancing agreements and natural gas imbalances
Operational balancing agreements and natural gas imbalances

To facilitate deliveries of natural gas and provide for operational flexibility, we have operational balancing agreements in place with other interconnecting pipelines. These agreements ensure that the volume of natural gas a shipper schedules for transportation between two interconnecting pipelines equals the volume actually delivered. If natural gas moves between pipelines in volumes that are more or less than the volumes the shipper previously scheduled, a natural gas imbalance is created. The imbalances are settled through periodic cash payments or repaid in-kind through future receipt or delivery of natural gas. Natural gas imbalances are recorded in Other current assets or Accrued expenses and other current liabilities in our Consolidated Balance Sheets at cost which approximates fair value.
Equity-based compensation
Equity-based compensation

We award equity-based compensation to management, non-management employees and directors under our long-term incentive plans, which provide for the issuance of options, unit appreciation rights, restricted units, phantom units, other unit-based awards, unit awards or replacement awards, as well as tandem Distribution Equivalent Rights ("DERs"). Compensation expense is measured by the fair value of the award at the date of grant as determined by management. Compensation expense is recognized in Corporate expenses and Direct operating expenses in our Consolidated Statements of Operations over the requisite service period of each award.
Income taxes
Income taxes

The Partnership is not a taxable entity for U.S. federal income tax purposes or for the majority of states that impose an income tax. Taxes on our net income are generally borne by our unitholders through the allocation of taxable income. Prior to the disposition of Marine Products in July 2018 (as discussed in Note 5. Dispositions), we owned American Midstream Blackwater, LLC, which owned a subsidiary that had operations which were subject to both U.S. federal and state income taxes. We accounted for income taxes of that subsidiary using the asset and liability approach. If it was more than likely that a deferred tax asset would not be realized, a valuation allowance was recognized.

Margin tax expense results from the enactment of laws by the state of Texas that apply to entities organized as partnerships and is included in Income tax expense in our Consolidated Statements of Operations. The Texas margin tax is computed on the portion of our taxable margin which is apportioned to Texas.

Net income (loss) for financial statement purposes may differ significantly from taxable income (loss) allocable to unitholders as a result of differences between the financial reporting and income tax bases of our assets and liabilities and the taxable income allocation requirement under our Partnership Agreement. The aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each partner's tax attributes in us is not available.
Accumulated other comprehensive income (loss)
Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss) is comprised solely of adjustments related to the Partnership's postretirement benefit plan.

Limited partners' net income (loss) per unit
Limited partners' net income (loss) per unit

We compute earnings per unit using the two-class method. The two-class method requires that securities which meet the definition of a participating security should be considered in the computation of basic earnings per unit. Under the two-class method, earnings per unit is calculated as if all of the earnings for the period were distributed under the terms of the Partnership Agreement, regardless of whether the General Partner has discretion over the amount of distributions to be made in any particular period, whether those earnings would actually be distributed during a particular period from an economic or practical perspective or whether the General Partner has other legal or contractual limitations on its ability to pay distributions that would prevent it from distributing all of the earnings for a particular period.

The two-class method does not impact our overall net income or other financial results; we make distributions on the basis of available cash and not earnings.  However, if a distribution exceeds the Minimum Quarterly Distribution it will have the impact of reducing net income per limited partner unit. This result occurs as a larger portion of the excess would be allocated to the incentive distribution rights of the General Partner. In periods in which our aggregate net income does not exceed our aggregate distributions for such period, the two-class method does not have any impact on our calculation of earnings per limited partner unit. As our preferred units participate in distributions to our common unitholders, in periods in which our aggregate net income exceeds our aggregate distributions for such period, the two-class method will have the impact of reducing net income per limited partner unit.

New accounting pronouncements
New Accounting Pronouncements

Standards Adopted in 2018

Revenue from Contracts with Customers (Topic 606) - In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a new standard related to revenue recognition which supersedes most of the existing revenue recognition requirements in GAAP and requires entities to recognize revenue at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. It also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.
The FASB has issued several amendments to the standard since its issuance, including clarification on accounting for licenses of intellectual property, identifying performance obligations, reporting gross versus net revenue and narrow-scope revisions and practical expedients.

We adopted the new standard on January 1, 2018 (the “initial application” date):
using the modified retrospective application, with no restatement of the comparative periods presented and a cumulative effect adjustment to retained earnings as of the date of adoption, and
disclosing the impact of the new standard in our consolidated financial statements included in this 2018 Form 10-K.

Our revenue is derived from the provision of gathering, processing, transportation, terminalling and storage services and the sale of commodities primarily to marketers and brokers, refiners and chemical manufacturers, utilities and power generation customers, industrial users and local distribution companies. Beginning on January 1, 2018, we account for revenue from contracts with customers in accordance with Topic 606. The unit of account in Topic 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided at a point in time or over a period of time. Topic 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Commodity Sales - For the majority of our commodity sales contracts: (i) each unit of product is a separate performance obligation, since our promise is to sell multiple distinct units of product at a point in time, (ii) the transaction price principally consists of variable consideration, which is determinable on commodity index prices for the volume of the product sold to the customer that month and (iii) the transaction price is allocated to each performance obligation based on the product’s standalone selling price. Revenues from sales of commodities are recognized at the point in time when control of the commodity transfers to the customer, which generally occurs upon delivery of the product to the customer or its designee. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales, month-to-month contracts and multi-year agreements.
In our Liquid Pipelines and Services segment, we enter into purchase and sale contracts as well as buy/sell contracts with counterparties, under which we gather and transport different types of crude oil and eventually sell the crude oil to either the same counterparty or different counterparties. For each of these arrangements, the Partnership assesses if control of the underlying commodity volumes transfers to the Partnership. Generally, the Partnership is unable to direct the use of the commodity volumes it purchases from the supplier because the Partnership is contractually required to redeliver an equivalent volume of the commodity back to the supplier or to a specified customer, therefore these arrangements are recorded on a net basis.
Occasionally, we enter into crude oil inventory exchange arrangements with the same counterparty where the purchase and sale of inventory are considered in contemplation of each other. These types of arrangements are accounted for as inventory exchanges and are recorded on a net basis.
Services - The Partnership provides gathering, processing, transportation, terminalling and storage services pursuant to a variety of contracts. Generally, for the majority of these contracts: (i) our promise is to transfer (or stand ready to transfer) a series of distinct integrated services over a period of time, which is a single performance obligation and (ii) the transaction price includes fixed or variable consideration, or both fixed and variable consideration. The amount of consideration is determinable at contract inception or at each month’s end based on our right to invoice at month end for the value of services provided to the customer in that month.
Revenue is recognized over the service period specified in the contract as the services are rendered using a time-based (passage of time) or units-based (units of service transferred) method for measuring provision of the services. Progress towards satisfying our performance obligation is based on the firm or interruptible nature of the promised service and the terms and conditions of the contract (such as contracts with or without makeup rights). Payment is generally received from the customer in the month of service or the month following the service. Contracts with customers generally are a combination of month-to-month and multi-year agreements.
Firm Services - Firm services are services that are promised to be available to the customer at all times during the term of the contract with limited exceptions. These agreements require customers to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements are entered into with customers to economically support the return on our capital expenditure necessary to construct the related asset. Our firm service contracts are typically structured with take-or-pay or minimum volume provisions, which specify minimum service quantities a customer will pay for even if it chooses not to receive or use them in the specified service period (referred to as “deficiency quantities”).
Under firm service contracts, we record a receivable from the customer in the period that services are provided or when the transaction occurs, including amounts for deficiency quantities from customers associated with minimum volume commitments. If a customer has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the customer’s ability to utilize the make-up right is remote.
Interruptible Services - Interruptible services are services provided to the extent that we have available capacity. Generally, we do not have an obligation to perform these services until we accept a customer’s periodic request for service. For the majority of these contracts, the customer will pay only for the actual quantities of services it chooses to receive or use and we typically recognize the transaction price as revenue as those units of service are transferred to the customer in the specified service period.
Gathering and Processing - Our Gas Gathering and Processing Services segment provides “wellhead-to-market” services to producers of natural gas and NGLs, which include transporting raw natural gas from various receipt points through gathering systems, treating the raw natural gas, processing raw natural gas to separate the NGLs from the natural gas, fractionating NGLs and selling or delivering pipeline-quality natural gas and NGLs to various markets and pipeline systems. Services can be firm if subject to a minimum volume commitment or acreage dedication or interruptible when offered on an as requested, non-guaranteed basis. Revenue for fee-based gathering and processing services is valued based on the rate in effect for the month of service and is recognized in the month of service based on the volumes of natural gas we gather, process and fractionate. Under these arrangements, we may take control of: (i) none of the commodities we sell (i.e., residue gas or NGLs), (ii) a portion of the commodities we sell or (iii) all of the commodities we sell.
In those instances where we purchase and obtain control of the entire natural gas stream in our producer arrangements, we have determined these are contracts with suppliers rather than contracts with customers and therefore, these arrangements are not included in the scope of Topic 606. These supplier arrangements are subject to updated guidance in Accounting Standards Codification (“ASC”) 705, Cost of Sales and Services, whereby any embedded fees within such contracts, which historically have been reported as services revenue, are now reported as a reduction to cost of sales upon adoption of Topic 606.
In those instances where we remit all of the cash proceeds received from third parties for selling the extracted commodities to the producer, less the fees attributable to these arrangements, we have determined that the producer has control over these commodities. Upon adoption of Topic 606, we eliminated recording both sales revenue (natural gas and products) and cost of sales amounts and now only record fees attributable to these arrangements as service revenues.
In other instances where we do not obtain control of the extracted commodities we sell, we are acting as an agent for the producer and, upon adoption of Topic 606, we have continued to recognize services revenue for the net amount of consideration we retain in exchange for our service.
The Partnership may charge additional service fees to customers for a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold) due to the significant upfront capital investment, and these fees are initially deferred and recognized to revenue over the expected period of customer benefit, generally the lesser of the expected contract term or the life of the related properties.
Transportation - Our transportation operations generally consist of fee-based activities associated with transporting crude oil, natural gas and NGL on pipelines, gathering systems and trucks. Revenues from pipeline tariffs and fees are associated with the transportation at a published tariff, as well as revenues associated with agreements for committed capacity on various assets. We primarily recognize pipeline tariff and fee revenues over time based on the volumes delivered and invoiced. The majority of our pipeline tariff and fee revenues are based on actual volumes and rates.
As is common in the pipeline transportation industry, our tariffs incorporate a loss allowance factor. The intent of the allowance in arrangements for the transportation of natural gas is to approximate the natural shrink that occurs when transporting gas. For crude oil transportation arrangements, loss allowance provisions are immaterial to the Partnership. In the event the Partnership retains excess natural gas and crude oil and subsequently sells the commodity to a third party, the sale is recorded at that point in time as a commodity sale.
Terminalling and Storage - In our Terminalling Services segment, we generally received fee-based compensation on guaranteed firm storage contracts, throughput fees charged to our customers when their products are either received or disbursed and other operational charges associated with ancillary services provided to our customers, such as excess throughput and steam heating. Storage fees resulting from short-term and long-term contracts are typically recognized in revenue ratably over the term of the contract regardless of the actual storage capacity utilized. Substantially all of our Terminalling Services segment assets were sold in 2018, see Note 5. Dispositions for more information.
Adoption of the new revenue standard resulted in changes to the timing of revenue recognition and in the reclassification between financial statement line items. See Note 3. Revenue Recognition, for further discussion.
Statement of Cash Flows - In August 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides specific guidance on cash flow classification issues to reduce diversity in practice. In connection with the January 1, 2018 retrospective adoption of this ASU, for the year ended December 31, 2017, we reclassified $2.8 million in distributions received from unconsolidated affiliates from operating cash inflows to investing cash inflows and reclassified $2.5 million of transaction costs associated with the disposal of our Propane Business from an investing cash outflow to an operating cash outflow in our Consolidated Statement of Cash Flows. Transaction costs for the year ended December 31, 2016 were not material.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires amounts described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. A reconciliation between the balance sheet and the statement of cash flows must be disclosed when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash and restricted cash equivalents.

We retrospectively adopted ASU 2016-18 as of January 1, 2018. For the year ended December 31, 2017, cash flows from investing activities were adjusted to remove the impact of $298.2 million in restricted cash inflows and for December 31, 2016, cash flows from investing activities were adjusted to remove the impact of $318.5 million in restricted cash outflows.

Stock Compensation - In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 was issued with the intent to clarify the scope of modification accounting and when it should be applied to a change to the terms or conditions of a share-based payment award. Under the new guidance, modification accounting is required for all changes to share-based payment awards, unless all the following conditions are met: (i) there is no change to the fair value of the award, (ii) the vesting conditions have not changed and (iii) the classification of the award as an equity instrument or a debt instrument has not changed. We adopted ASU 2017-09 on its effective date of January 1, 2018, and the adoption did not have a material impact on our consolidated financial statements.

Standards Not Yet Adopted

Leases (Topic 842) - In February 2016, the FASB issued ASU No. 2016-02 (“Topic 842”) Leases, which supersedes the lease recognition requirements in ASC 840, Leases. Under the new guidance, for leases with a term longer than 12 months, a lessee should recognize a lease liability and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term. Topic 842 retains a classification distinction between finance leases and operating leases, with the classification affecting the pattern of expense recognition in the income statement. This ASU also requires enhanced disclosures.
In 2018, the FASB issued ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 and ASU No. 2018-11, Targeted Improvements. Under these updates, optional transition practical expedients are available (1) whereby existing or expired land easements that were not previously accounted for as leases under Topic 840 are not required to be evaluated under Topic 842 and (2) lease and associated non-lease components are not required to be separated within lessor arrangements if certain criteria are met. The FASB also issued ASUs 2018-10 and 2018-20, Codification Improvements to Topic 842 and Narrow Scope Improvements for Lessors, respectively, to alleviate unintended consequences from applying Topic 842. The amendments do not make substantive changes to the core provisions or principles of Topic 842 and are not expected to significantly impact our implementation process.
We adopted the new standard on its effective date, January 1, 2019, using the modified retrospective application. We have also elected the package of practical expedients permitted under the transition guidance within Topic 842 which, among other things, allows us to carry forward the historical lease classification. As such, we did not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. We did not elect the hindsight practical expedient which permits entities to use hindsight in determining the lease term and assessing impairment of ROU assets.
Additionally, we elected certain practical expedients on an ongoing basis, including the practical expedient for short-term leases pursuant to which a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a lease liability and ROU asset for leases (1) with a term of 12 months or less and (2) that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Instead, we will recognize the lease payments for short-term leases within profit and loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred.
We selected a third-party consulting firm to assist us with the adoption of the new guidance. We are implementing specialized software and developing policies based on reviews of existing arrangements. We intend to complete any required changes to our systems, software applications and processes, including training personnel and updating our internal controls, during the first quarter 2019.
While we continue to evaluate certain aspects of Topic 842, the application will have an effect on our consolidated financial statements from a lessee perspective, with the most significant effects relating to (1) the recognition of new ROU assets and lease liabilities on our balance sheet and (2) significant new disclosures about our leasing activities. We believe substantially all leases where we are a lessee will continue to be classified as operating leases under Topic 842. We do not expect Topic 842 to have a material effect on our consolidated financial statements from a lessor perspective.
On adoption, we expect to recognize additional lease liabilities ranging from $28 million to $32 million, with corresponding ROU assets of approximately the same amount. This estimate could change as the Partnership continues to finalize the implementation. Management does not expect a material impact to the Partnership’s Consolidated Statements of Operations or Cash Flows.
Financial Instruments - In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance will become effective for interim and annual periods beginning after December 15, 2019. We expect to adopt ASU 2016-13 on January 1, 2020, and we are currently evaluating the effect that adopting this guidance will have on our consolidated financial position, results of operations and cash flows.

Fair Value Measurement - In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). This guidance eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies certain disclosure requirements. The FASB developed the amendments to Topic 820 as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to consolidated financial statements by focusing on requirements that clearly communicate the most important information to users of the consolidated financial statements. This guidance will become effective for interim and annual periods beginning after December 15, 2019. We expect to adopt ASU 2018-13 on January 1, 2020, and we are currently evaluating the impact, if any, that adopting this guidance will have on our disclosures.

Cloud Computing Arrangements - In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ("ASU 2018-15"). The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs of a hosting arrangement that is a service contract will be expensed over the term of the hosting arrangement. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted, including adoption in any interim period. The amendments can be applied either retrospectively or prospectively to all implementation costs incurred after the adoption date. We expect to adopt ASU 2018-15 on January 1, 2020, and we are currently evaluating the impact, if any, that adopting this guidance will have on our accounting and disclosures.
v3.19.1
Revenue Recognition (Tables)
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Effect of ASC 606 Adoption on Consolidated Financial Statements
The effect of adopting Topic 606, due to the change in method to measure project progress, as discussed in Note 2. Recent Accounting Pronouncements, is as follows (in thousands):

 
 
Year Ended December 31, 2018
 
 
As Reported
 
Adjustments
 
Amounts Without Adoption of Topic 606
Revenue
 
 
 
 
 
 
Commodity sales
 
$
610,042

 
$
34,093

 
$
644,135

Services
 
193,276

 
(31,067
)
 
162,209

Operating expenses
 
 
 
 
 
 
Costs of sales
 
592,040

 
18,362

 
610,402

Direct operating expenses
 
87,677

 
(12,985
)
 
74,692

 
 
 
 
 
 
 
Operating income
 
25,268

 
(2,352
)
 
22,916

 
 
 
 
 
 
 
Net loss attributable to the Partnership
 
(7,764
)
 
(2,352
)
 
(10,116
)
 
 
 
 
 
 
 
General Partner’s interest in net loss
 
(101
)
 
(31
)
 
(132
)
Limited Partners’ interest in net loss
 
(7,663
)
 
(2,321
)
 
(9,984
)

 
 
As of December 31, 2018
 
 
As Reported
 
Adjustments
 
Amounts Without Adoption of Topic 606
Assets
 
 
 
 
 
 
Accounts receivable, net
 
$
76,632

 
$
(61,182
)
 
$
15,450

Unbilled revenue
 

 
61,182

 
61,182

Other current assets
 
27,422

 
(252
)
 
27,170

Other assets
 
17,403

 
(8,586
)
 
8,817

Liabilities
 
 
 
 
 


Other long-term liabilities
 
18,491

 
(14,431
)
 
4,060

Disaggregation of Revenue
The following table presents our segment revenues from contracts with customers disaggregated by type of activity (in thousands):
 
Year Ended December 31, 2018
 
Gas Gathering and Processing Services
 
Liquid Pipelines and Services
 
Natural Gas Transportation Services
 
Offshore Pipelines and Services
 
Terminalling Services
 
Total
Commodity sales:
 
 
 
 
 
 
 
 
 
 
 
     Natural gas
$
10,068

 
$

 
$
25,608

 
$
9,946

 
$

 
$
45,622

     NGLs
76,631

 

 

 
143

 

 
76,774

     Condensate
43,823

 

 

 
688

 

 
44,511

     Crude oil

 
428,977

 

 

 

 
428,977

     Other sales (1)
953

 

 
9

 
109

 
13,087

 
14,158

 
131,475

 
428,977

 
25,617

 
10,886

 
13,087

 
610,042

Services:
 
 
 
 
 
 
 
 
 
 
 
     Gathering and processing
20,178

 

 

 
1,263

 

 
21,441

     Transportation
1,872

 
17,243

 
33,626

 
37,769

 

 
90,510

     Terminalling and storage

 
3,360

 

 

 
30,907

 
34,267

     Other services(2)
2,820

 
935

 
420

 
21,212

 
1,369

 
26,756

 
24,870

 
21,538

 
34,046

 
60,244

 
32,276

 
172,974

 
 
 
 
 
 
 
 
 
 
 
 
Revenues from contracts with customers
$
156,345

 
$
450,515

 
$
59,663

 
$
71,130

 
$
45,363

 
$
783,016

_______________________
(1)  
Other commodity sales for our Terminalling Services segment include sales of Refined Products and Marine Products. See Note 5. Dispositions.
(2) 
Other services in our Offshore Pipelines and Services segment include asset management services.  

The following table presents the reconciliation of our revenues from contracts with customers to segment revenues and total revenues as disclosed in our Consolidated Statement of Operations (in thousands):

 
Year Ended December 31, 2018
 
Gas Gathering and Processing Services
 
Liquid Pipelines and Services
 
Natural Gas Transportation Services
 
Offshore Pipelines and Services
 
Terminalling Services
 
Total
Revenues from contracts with customers
$
156,345

 
$
450,515

 
$
59,663

 
$
71,130

 
$
45,363

 
$
783,016

Revenues generated through operating lease arrangements
19,252

 

 

 
1,050

 

 
20,302

Gains on commodity derivatives, net
311


1,725

 

 

 

 
2,036

     Total revenues of reportable segments
$
175,908

 
$
452,240

 
$
59,663

 
$
72,180

 
$
45,363

 
$
805,354

Contract Asset and Liability Balances
The following table presents the change in the contract assets and liability balances during the year ended December 31, 2018 (in thousands):
 
Contract Assets
 
Contract Liabilities
Balance at December 31, 2017
$

 
$
2,136

Topic 606 implementation
2,555

 
13,257

Amounts recognized as revenue

 
(2,602
)
Additions
6,283

 
2,823

Balances at December 31, 2018
$
8,838

 
$
15,614

 
 
 
 
Current
$
252

 
$
409

Non-current
8,586

 
15,205

Balances at December 31, 2018
$
8,838

 
$
15,614

Revenue Expected to be Recognized
The following table as of December 31, 2018, represents only revenue expected to be recognized from contracts where the price and quantity of the product or service are fixed (in thousands):
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
 
Total
Gathering and processing based on minimum volume commitments
$
12,677

 
$
12,677

 
$
12,654

 
$
12,401

 
$
12,401

 
$
5,943

 
$
68,753

Transportation agreements
21,379

 
20,436

 
19,933

 
19,915

 
19,946

 
179,204

 
280,813

Other
1,648

 
1,560

 

 

 

 

 
3,208

Total
$
35,704

 
$
34,673

 
$
32,587

 
$
32,316

 
$
32,347

 
$
185,147

 
$
352,774

v3.19.1
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Schedule of Purchase Price Allocation
The following table presents the aggregated allocation of the purchase price based on estimated fair values of Panther’s assets acquired and liabilities assumed at the date of acquisition, August 8, 2017 (in thousands):

 
Purchase Price Allocation
Fair value of acquired noncontrolling interest
$
28,597

Property, plant and equipment
19,497

Intangibles (customer relationships)
5,984

Net working capital, net of cash acquired
2,095

Goodwill
4,692

     Total
$
60,865

The following table presents our aggregated allocation of the purchase price based on fair values of assets and liabilities acquired at the date of acquisition, June 2, 2017 (in thousands):
 
Purchase Price Allocation
Property, plant and equipment:
 
     Pipelines and right-of-way
$
13,433

     Equipment
18,853

Total property, plant and equipment
32,286

Liability
(286
)
Total cash consideration
$
32,000

v3.19.1
Dispositions (Tables)
12 Months Ended
Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of disposal groups
Financial information for the Mid-Continent Business which is included in Income (loss) from discontinued operations, net of tax in the Consolidated Statement of Operations is summarized below (in thousands):
 
 
Year Ended December 31, 2016
Revenues
 
 
  Total revenues
 
$
11,495

Costs and Expenses
 
 
Costs of sales
 
11,687

Direct operating expenses
 
203

Depreciation, amortization and accretion
 
211

Gain on sale of assets, net
 
(114
)
  Total expenses
 
11,987

 
 
 
Operating loss
 
(492
)
 
 
 
Other expense
 
(47
)
Loss from discontinued operations before income tax expense
 
(539
)
 
 
 
Income tax expense
 

Net loss from discontinued operations
 
$
(539
)


Consolidated Statement of Operations
 
December 31,
 
 
2017
 
2016
Total revenues
 
$
87,520

 
$
137,896

Costs and Expenses
 
 
 
 
Costs of sales
 
38,961

 
49,672

Direct operating expenses
 
35,177

 
51,828

Corporate expenses
 
7,174

 
9,992

Impairment of goodwill
 

 
12,802

Depreciation, amortization and accretion
 
9,823

 
15,936

(Gain) loss on sale of assets, net
 
(55
)
 
2,182

  Total expenses
 
91,080

 
142,412

 
 
 
 
 
Operating loss
 
(3,560
)
 
(4,516
)
 
 
 
 
 
Other income (expense)
 
 
 
 
Interest expense
 
(36
)
 
(36
)
Other income
 
316

 
374

Loss from discontinued operations before income tax expense
 
(3,280
)
 
(4,178
)
 
 
 
 
 
Income tax (expense) benefit
 
(59
)
 
2

Net loss from discontinued operations
 
(3,339
)
 
(4,176
)
Partnership's gain from the sale of discontinued operations
 
47,434

 

Partnership's income (loss) from discontinued operations, including gain on sale
 
$
44,095

 
$
(4,176
)


Consolidated Statement of Operations
 
December 31,
 
 
2017
 
2016
Total revenues
 
$
87,520

 
$
137,896

Costs and Expenses
 
 
 
 
Costs of sales
 
38,961

 
49,672

Direct operating expenses
 
35,177

 
51,828

Corporate expenses
 
7,174

 
9,992

Impairment of goodwill
 

 
12,802

Depreciation, amortization and accretion
 
9,823

 
15,936

(Gain) loss on sale of assets, net
 
(55
)
 
2,182

  Total expenses
 
91,080

 
142,412

 
 
 
 
 
Operating loss
 
(3,560
)
 
(4,516
)
 
 
 
 
 
Other income (expense)
 
 
 
 
Interest expense
 
(36
)
 
(36
)
Other income
 
316

 
374

Loss from discontinued operations before income tax expense
 
(3,280
)
 
(4,178
)
 
 
 
 
 
Income tax (expense) benefit
 
(59
)
 
2

Net loss from discontinued operations
 
(3,339
)
 
(4,176
)
Partnership's gain from the sale of discontinued operations
 
47,434

 

Partnership's income (loss) from discontinued operations, including gain on sale
 
$
44,095

 
$
(4,176
)


The following table summarizes other selected financial information related to the Propane Business (in thousands):
 
Year ended December 31,
 
2017
 
2016
Depreciation
$
8,074

 
$
13,108

Amortization
1,749

 
2,828

Capital expenditures
3,143

 
6,549

 
 
 
 
Other operating non-cash items
 
 
 
      Impairment of goodwill

 
12,802

      (Gain) loss on sale of assets
(55
)
 
2,182

      Unrealized (gain) loss on derivative contracts, net

 
(1,072
)
v3.19.1
Other Current Assets (Tables)
12 Months Ended
Dec. 31, 2018
Other Current Assets [Abstract]  
Schedule of Other Current Assets
Other current assets consist of the following (in thousands):
 
December 31,
 
2018
 
2017
Prepaid expenses
$
8,395

 
$
8,944

Current portion of deferred debt issuance costs(1)
5,433

 

Insurance receivables
649

 
1,741

Due from related parties
16

 
4,362

Other receivables
6,975

 
5,187

Risk management assets
4,768

 
3,186

Inventory
1,186

 
2,966

      Total other current assets
$
27,422

 
$
26,386


____________________________
(1) 
Related to our Credit Agreement. See Note 14. Debt Obligations for discussion of our debt obligations.
v3.19.1
Risk Management Activities (Tables)
12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of notional amounts of outstanding derivative positions
The following table summarizes the net notional volume buy (sell) of our outstanding commodity-related derivatives, excluding those derivatives that qualified for the normal purchase normal sale exception as of December 31, 2018 and 2017, none of which were designated as hedges for accounting purposes.
 
 
December 31, 2018
 
December 31, 2017
Commodity Swaps
 
Notional Volume
 
Maturity
 
Notional Volume
 
Maturity
Crude Oil Basis (barrels)
 
208,000
 
February 2019
 
 
Fair value of derivative contracts
The following table summarizes the fair value of our derivative contracts (before netting adjustments) included in our Consolidated Balance Sheets (in thousands):

 
 
 
Asset Derivatives
 
Liability Derivatives
 
 
 
December 31,
 
December 31,
Type
Balance Sheet Classification
 
2018
 
2017
 
2018
 
2017
Commodity swaps
Accrued expenses and other current liabilities
 
$

 
$

 
$
(2
)
 
$

 
 
 
 
 
 
 
 
 
 
Interest rate swaps
Other current assets
 
4,314

 
2,677

 

 

Interest rate swaps
Other assets
 
6,017

 
8,807

 

 

 
 
 
 
 
 
 
 
 
 
Weather derivative
Other current assets
 
454

 
509

 

 

 
Total
 
$
10,785

 
$
11,993

 
$
(2
)
 
$

Realized and unrealized gains (losses) with commodity and interest rate derivative instruments
For the years ended December 31, 2018, 2017 and 2016, the realized and unrealized gains (losses) associated with our commodity, interest rate and weather derivative instruments were recorded in our Consolidated Statements of Operations, as follows (in thousands):
 
 
Realized
 
Unrealized
2018
 

Gains (losses) on commodity derivatives, net
 
$
2,038

 
$
(2
)
Interest expense, net of capitalized interest
 
5,894

 
(1,154
)
Direct operating and corporate expenses
 
(1,045
)
 

Total
 
$
6,887

 
$
(1,156
)
2017
 
 
 
 
Losses on commodity derivatives, net
 
$
(119
)
 
$

Interest expense, net of capitalized interest
 
89

 
1,109

Direct operating and corporate expenses
 
(1,030
)
 

Total
 
$
(1,060
)
 
$
1,109

2016
 
 
 
 
Losses on commodity derivatives, net
 
$
(1,569
)
 
$
(48
)
Interest expense, net of capitalized interest
 
(144
)
 
10,375

Direct operating and corporate expenses
 
(966
)
 

Total
 
$
(2,679
)
 
$
10,327

v3.19.1
Property, Plant and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Property, plant, and equipment, net
Property, plant and equipment, net, consists of the following (in thousands, excluding useful life):
 
 
Useful Life
(in years)
 
December 31,
2018
 
December 31,
2017
Land
N/A
 
$
14,635

 
$
18,145

Construction in progress
N/A
 
55,295

 
55,622

Transportation equipment
5 to 15
 
21,012

 
22,697

Buildings and improvements
4 to 40
 
11,503

 
16,235

Processing and treating plants
8 to 40
 
125,008

 
123,138

Pipelines and compressors
3 to 40
 
1,037,889

 
974,301

Storage
3 to 40
 
44,431

 
146,105

Equipment
5 to 20
 
65,793

 
80,220

Total property, plant and equipment
 
 
1,375,566

 
1,436,463

Less accumulated depreciation
 
 
(377,858
)
 
(340,878
)
Property, plant and equipment, net
 
 
$
997,708

 
$
1,095,585

v3.19.1
Goodwill and Intangible Assets, Net (Tables)
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill
The following table presents activity in the Partnership's goodwill balance as of December 31, 2018 and 2017 (in thousands):

 
 
Liquid Pipelines and Services
 
Offshore Pipelines and Services
 
Terminalling Services
 
Total
Balance at January 1, 2017
 
$
113,669

 
$

 
$
88,466

 
$
202,135

Transfers (1)
 
11,041

 

 
(11,041
)
 

Additions (2)
 

 
4,692

 

 
4,692

Impairment charges
 
(77,961
)
 

 

 
(77,961
)
Balance at December 31, 2017
 
46,749

 
4,692

 
77,425

 
128,866

Sale of assets(3)
 

 

 
(77,425
)
 
(77,425
)
Additions (2)
 

 
282

 

 
282

Impairment charges
 

 

 

 

Balance at December 31, 2018
 
$
46,749

 
$
4,974

 
$

 
$
51,723

 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
 
 
 
 
 
 
 

Goodwill
 
$
124,710

 
$
4,692

 
$
77,425

 
$
206,827

Accumulated impairment losses
 
(77,961
)
 

 

 
(77,961
)
 
 
$
46,749

 
$
4,692

 
$
77,425

 
$
128,866

 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
 
 
 
 
 
 
 
 
Goodwill
 
$
124,710

 
$
4,974

 
$

 
$
129,684

Accumulated impairment losses
 
(77,961
)
 

 

 
(77,961
)
 
 
$
46,749

 
$
4,974

 
$

 
$
51,723

_______________________
(1) 
During 2018, we reorganized our reporting structure resulting in a recast of our segment results to reflect the changes. See Note 23. Reportable Segments for a discussion on the restructuring of our reporting structure.
(2) 
Due to our Panther acquisition discussed in Note 4. Acquisitions, our goodwill balance increased by approximately $5.0 million associated with the Panther assets acquired and reported in our Offshore Pipelines and Services segment.
(3)
In 2018, our goodwill decreased $16.3 million due to Marine Products which was sold on July 31, 2018 and $61.1 million due to Refined Products which was sold on December 20, 2018. See Note 5. Dispositions for further discussions.
Schedule of finite-lived intangible assets
Intangible assets, net, consist of the following (in thousands):
 
December 31,
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
Customer relationships
$
64,744

 
$
110,483

 
$
(17,033
)
 
$
(29,965
)
 
$
47,711

 
$
80,518

Customer contracts
94,692

 
94,692

 
(53,156
)
 
(48,173
)
 
41,536

 
46,519

Dedicated acreage
42,547

 
42,547

 
(7,592
)
 
(6,216
)
 
34,955

 
36,331

Collaborative arrangements
11,884

 
11,884

 
(2,264
)
 
(1,415
)
 
9,620

 
10,469

Other
198

 
1,262

 
(28
)
 
(1,089
)
 
170

 
173

Total
$
214,065

 
$
260,868

 
$
(80,073
)
 
$
(86,858
)
 
$
133,992

 
$
174,010


Remaining estimated amortization expense
Remaining estimated amortization expense is as follows (in thousands):
 
Estimated Amortization Expense
2019
$
10,182

2020
10,182

2021
10,182

2022
9,293

2023
6,626

Thereafter
87,321

v3.19.1
Investment in Unconsolidated Affiliates (Tables)
12 Months Ended
Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Investments in and Advances to Affiliates
The following table presents activity in the Partnership's investments in unconsolidated affiliates (in thousands):
 
 
Delta House (1)
 
Emerald Transactions
 
 
 
 
 
 
 
 
FPS
 
OGL
 
Destin
 
Tri-States
 
Okeanos
 
Wilprise
 
MPOG(2)
 
Cayenne
 
Total
Ownership % at December 31, 2017
35.7
%
 
35.7
%
 
66.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
%
 
50.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership % at December 31, 2018
35.7
%
 
35.7
%
 
66.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
%
 
50.0
%
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Balance at December 31, 2015
$
33,465

 
$
23,060

 
$

 
$

 
$

 
$

 
$
7,179

 
$

 
$
63,704

 
Investments
55,461

 
3,255

 
122,830

 
56,681

 
27,451

 
5,064

 

 

 
270,742

 
Earnings in unconsolidated affiliates
21,022

 
9,260

 
3,946

 
1,633

 
3,642

 
437

 
218

 

 
40,158

 
Contributions

 

 

 

 

 

 
429

 

 
429

 
Distributions
(45,465
)
 
(10,125
)
 
(15,894
)
 
(3,292
)
 
(4,034
)
 
(557
)
 
(3,679
)
 

 
(83,046
)
Balance at December 31, 2016
64,483

 
25,450

 
110,882

 
55,022

 
27,059

 
4,944

 
4,147

 

 
291,987

 
Investments
22,538

 
27,289

 
30,240

 

 

 

 
(2,365
)
 

 
77,702

 
Earnings in unconsolidated affiliates
28,794

 
12,536

 
9,457

 
4,395

 
7,719

 
719

 
(682
)
 
112

 
63,050

 
Contributions

 

 

 

 

 

 

 
6,542

 
6,542

 
Distributions
(25,403
)
 
(18,343
)
 
(26,334
)
 
(6,360
)
 
(12,333
)
 
(974
)
 
(1,100
)
 

 
(90,847
)
Balance at December 31, 2017
90,412

 
46,932

 
124,245

 
53,057

 
22,445

 
4,689

 

 
6,654

 
348,434

 
Earnings in unconsolidated affiliates
23,029

 
12,440

 
21,807

 
4,256

 
12,700

 
957

 

 
6,740

 
81,929

 
Contributions
847

 
6

 

 

 

 

 

 
4,293

 
5,146

 
Distributions
(23,201
)
 
(17,184
)
 
(31,701
)
 
(5,984
)
 
(14,504
)
 
(1,139
)
 

 
(4,000
)
 
(97,713
)
Balance at December 31, 2018
$
91,087

 
$
42,194

 
$
114,351

 
$
51,329

 
$
20,641

 
$
4,507

 
$

 
$
13,687

 
$
337,796


_______________________
(1)
Represents direct and indirect ownership interests in Class A units.
(2)  
We purchased the remaining equity interest in MPOG on August 8, 2017. See Note 4. Acquisitions.
Schedule of Investments
The following table represents the basis difference by unconsolidated affiliate (in thousands):
 
 
Delta House
 
Emerald Transactions
 
 
 
 
 
 
FPS
 
OGL
 
Destin
 
Tri-States
 
Okeanos
 
Wilprise
 
Cayenne
 
Total
December 31, 2017
$
43,815

 
$
(8,998
)
 
$
881

 
$
32,092

 
$
(60,533
)
 
$
1,486

 
$
(3,936
)
 
$
4,807

December 31, 2018
$
41,762

 
$
(8,424
)
 
$
826

 
$
30,587

 
$
(57,039
)
 
$
1,374

 
$
(3,666
)
 
$
5,420



The following tables include summarized data for the entities underlying our equity method investments (in thousands) (amounts represent 100% of investee financial information):
 
 
December 31,
 
 
2018
 
2017
Current assets
 
$
96,116

 
$
80,405

Non-current assets
 
1,239,733

 
1,288,862

Current liabilities
 
14,700

 
130,904

Non-current liabilities
 
542,047

 
436,584


 
 
Delta House
 
Emerald Transactions
 
 
 
 
 
 
 
 
FPS
 
OGL
 
Destin
 
Tri-States
 
Okeanos
 
Wilprise
 
MPOG (1)
 
Cayenne
 
Total
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
Revenue
$
100,497

 
$
39,970

 
$
57,815

 
$
49,030

 
$
25,110

 
$
5,798

 
$

 
$
15,439

 
$
293,659

 
Operating expenses
1,190

 
389

 
13,741

 
8,872

 
1,442

 
752

 

 
1,381

 
27,767

 
Net income
70,355

 
33,285

 
32,792

 
34,565

 
13,807

 
4,224

 

 
12,940

 
201,968

 
Income attributable to Partnership
25,082

 
11,866

 
21,862

 
5,761

 
9,206

 
1,069

 

 
6,470

 
81,316

 
Basis difference amount recognized
(2,053
)
 
574

 
(55
)
 
(1,505
)
 
3,494

 
(112
)
 

 
270

 
613

 
Earnings in unconsolidated affiliates
23,029

 
12,440

 
21,807

 
4,256

 
12,700

 
957

 

 
6,740

 
81,929

 
Ownership percentage
35.7
%
 
35.7
%
 
66.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
%
 
50.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
Revenue
$
175,582

 
$
63,720

 
$
45,545

 
$
50,505

 
$
18,040

 
$
5,169

 
$
4,047

 
$

 
$
362,608

 
Operating expenses
1,243

 
370

 
17,841

 
9,583

 
1,906

 
1,085

 
2,199

 

 
34,227

 
Net income
138,648

 
57,123

 
18,036

 
35,400

 
6,336

 
3,281

 
(1,042
)
 

 
257,782

 
Income attributable to Partnership
30,244

 
12,322

 
9,649

 
5,900

 
4,224

 
830

 
(695
)
 

 
62,474

 
Basis difference amount recognized
(1,450
)
 
214

 
(192
)
 
(1,505
)
 
3,495

 
(111
)
 
13

 
112

 
576

 
Earnings in unconsolidated affiliates
28,794

 
12,536

 
9,457

 
4,395

 
7,719

 
719

 
(682
)
 
112

 
63,050

 
Ownership percentage
35.7
%
 
35.7
%
 
66.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
%
 
50.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
Revenue
$
182,059

 
$
68,381

 
$
32,319

 
$
25,557

 
$
10,453

 
$
3,276

 
$
8,957

 
$

 
$
331,002

 
Operating expenses
1,140

 
361

 
15,315

 
6,754

 
1,670

 
706

 
2,882

 

 
28,828

 
Net income
148,724

 
63,051

 
8,272

 
15,983

 
1,911

 
2,028

 
298

 

 
240,267

 
Income attributable to Partnership
21,306

 
9,279

 
4,108

 
2,663

 
1,274

 
513

 
198

 

 
39,341

 
Basis difference amount recognized
(284
)
 
(19
)
 
(162
)
 
(1,030
)
 
2,368

 
(76
)
 
20

 

 
817

 
Earnings in unconsolidated affiliates
21,022

 
9,260

 
3,946

 
1,633

 
3,642

 
437

 
218

 

 
40,158

 
Ownership percentage
20.1
%
 
20.1
%
 
49.7
%
 
16.7
%
 
66.7
%
 
25.3
%
 
66.7
%
 
%
 
 

_______________________
(1)
In August 2017, we acquired 100% of the interest in POGS, the outstanding interests in one of our equity investments. We have consolidated this entity from the acquisition date. See Note 4. Acquisitions for further discussion.

v3.19.1
Accrued Expenses and Other Current Liabilities (Tables)
12 Months Ended
Dec. 31, 2018
Payables and Accruals [Abstract]  
Schedule of accrued expenses and other current liabilities
Accrued expenses and other current liabilities consists of the following (in thousands):
 
 
December 31,
 
 
2018
 
2017
Capital expenditures
 
$
10,336

 
$
10,721

Accrued interest
 
3,910

 
3,190

Current portion of asset retirement obligation
 
3,846

 
6,416

Additional Blackwater acquisition consideration
 

 
5,000

Taxes payable
 
27,522

 
5,263

Due to related parties
 
9,566

 
6,609

Professional fees
 
3,483

 
1,848

Royalties, gas imbalance and leases payables
 
4,405

 
7,905

Other
 
15,544

 
21,902

     Total accrued expenses and other current liabilities
 
$
78,612

 
$
68,854

v3.19.1
Asset Retirement Obligations (Tables)
12 Months Ended
Dec. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]  
Schedule of reconciliation of the beginning and ending aggregate carrying amount of ARO liabilities
The following table presents activity in our AROs (in thousands):
 
Years Ended December 31,
 
2018
 
2017
Balance as of January 1,
$
72,610

 
$
50,862

Additions (1)
260

 
8,922

Revision in estimate (2)
(216
)
 
11,516

Disposals
(515
)
 

Expenditures
(4,440
)
 
(697
)
Accretion expense
3,598

 
2,007

Balance as of December 31,
71,297

 
72,610

Current portion
3,846

 
6,416

Non-current portion
$
67,451

 
$
66,194

_________________________
(1)
Year ended December 31, 2017, includes $8.7 million assumed in connection with the Panther acquisition on August 8, 2017 described in Note 4. Acquisitions. This assumed ARO in 2017 was associated with PPL, POGS and MPOG entities. Of the balance, the total ARO associated with MPOG was approximately $7.0 million. This balance represents 100% of the ARO balance associated with MPOG that we assumed as a result of purchasing the remaining 33.3% of ownership of MPOG, which was our 66.7% investment pre-August 8, 2017.
(2)  
Year ended December 31, 2017, represents updated liability associated with the ARO relating to our High Point assets in the Offshore Pipelines and Services segment. This update was due to our annual review of ARO obligations which resulted in a revised estimated cost of the original ARO recorded.
v3.19.1
Debt Obligations (Tables)
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Outstanding borrowings
The Credit Agreement includes the following financial covenants, as amended by the Amendments and defined in the Credit Agreement, which financial covenants will be tested on a quarterly basis, for the fiscal quarter then ending:
 
Minimum Consolidated Interest Coverage Ratio
 
Maximum Consolidated Total Leverage Ratio
 
Maximum Consolidated Secured Leverage Ratio
December 31, 2018
1.75:1.00
 
6.25:1.00
 
3.75:1.00
March 31, 2019
1.75:1.00
 
6.50:1.00
 
3.75:1.00
June 30, 2019 and thereafter
1.50:1.00
 
5.75:1.00
 
3.50:1.00

As of December 31, 2018, we were in compliance with our Credit Agreement financial covenants, including those shown below:
Ratio
 
 
 
Actual
Consolidated Interest Coverage Ratio
 
 
 
2.12
Consolidated Total Leverage Ratio
 
 
 
5.79
Consolidated Secured Leverage Ratio
 
 
 
3.17
Our outstanding debt consists of the following as of December 31, 2018 and 2017 (in thousands):
 
December 31, 2018
 
December 31, 2017
Credit Agreement
$
514,800

 
$
697,900

8.50% Senior unsecured notes, due 2021
425,000

 
425,000

3.77% Senior secured notes, due 2031 (non-recourse)
57,517

 
58,324

3.97% Senior secured notes, due 2032 (non-recourse)
30,270

 
32,025

Other debt
4,127

 
4,989

Total debt obligations
1,031,714

 
1,218,238

Unamortized debt issuance costs
(8,009
)
 
(9,231
)
Total debt
1,023,705

 
1,209,007

Current portion of long-term debt
(522,966
)
 
(7,551
)
Long-term debt
$
500,739

 
$
1,201,456

Debt instrument redemption
On and after December 15, 2018, the Issuers may redeem all or a part of the 8.50% Senior Notes, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if redeemed during the twelve-month period beginning on December 15 of the years indicated below:
Year
Percentage
2018
104.250%
2019
102.125%
2020 and thereafter
100.000%
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments
The following table presents the carrying value and estimated fair value of our debt as of December 31, 2018 and December 31, 2017. Short-term and long-term debt are recorded at amortized cost in the Consolidated Balance Sheets.
 
 
December 31, 2018
 
December 31, 2017
 
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Debt
 
 
 
 
 
 
 
 
8.5% Senior Unsecured Notes
 
$
419,451

 
$
399,789

 
$
418,421

 
$
437,062

3.77% Senior Secured Notes
 
55,370

 
51,567

 
56,005

 
53,845

3.97% Trans-Union Secured Senior Notes
 
29,956

 
27,822

 
31,692

 
30,221

Total
 
$
504,777

 
$
479,178

 
$
506,118

 
$
521,128

v3.19.1
Convertible Preferred Units (Tables)
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Schedule of preferred units
Our convertible preferred units consist of the following (in thousands):

 
Series A
 
Series C
 
Series D
 
Total
 
Units
$
 
Units
$
 
Units
$
 
$
December 31, 2016
10,107

$
181,386

 
8,792

$
118,229

 
2,333

$
34,475

 
$
334,090

Issuance of units


 


 
(2,333
)
(34,475
)
 
(34,475
)
Paid in kind unit distributions
612

10,412

 
173

7,153

 


 
17,565

December 31, 2017
10,719

$
191,798

 
8,965

$
125,382

 

$

 
$
317,180

Paid in kind unit distributions
291

3,983

 
277

3,461

 


 
7,444

December 31, 2018
11,010

$
195,781

 
9,242

$
128,843

 

$

 
$
324,624

v3.19.1
Partners' Capital (Tables)
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Schedule for number of units outstanding
The following table presents unit activity (in thousands):
 
 
General
Partner Interest
 
Limited Partner Interest
 
Series B Convertible Units
Balances at December 31, 2015
 
536

 
50,504

 
1,350

Conversion of Series B Units
 

 
1,350

 
(1,350
)
LTIP vesting
 

 
283

 

Issuance of GP units
 
144

 

 

Return of escrow units
 

 
(1,034
)
 

Issuance of common units
 

 
248

 

Balances at December 31, 2016
 
680

 
51,351

 

LTIP vesting
 

 
431

 

Issuance of GP units
 
285

 

 

Issuance of common units
 

 
929

 

Balances at December 31, 2017
 
965

 
52,711

 

LTIP vesting
 

 
495

 

Issuance of GP units
 
16

 

 

Issuance of common units (1)
 

 
811

 

Balances at December 31, 2018
 
981

 
54,017

 


_______________________
(1)
Represents common units issued to an affiliate of ArcLight to satisfy the earn-out obligation related to Blackwater Midstream Holdings, LLC. See Note 21. Related Party Transactions for more information.
Distributions Made to Limited Partner, by Distribution
During the years ended December 31, 2018, 2017 and 2016, we made the following distributions (in thousands):
 
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
Series A Units
 
 
 
 
 
 
Cash paid
 
$
13,625

 
$
8,354

 
$
4,935

Accrued (1)
 
3,983

 
3,767

 
5,260

Paid-in-kind
 
3,767

 
9,378

 
13,321

 
 
 
 
 
 
 
Series C Units
 
 
 
 
 
 
Cash paid
 
11,437

 
12,186

 
3,089

Accrued (1)
 
3,461

 
4,309

 
3,627

Paid-in-kind
 
4,309

 
2,844

 
2,772

 
 
 
 
 
 
 
Series D Units
 
 
 

 
 
Cash paid
 

 
2,887

 

Accrued (1)
 

 

 
963

 
 
 
 
 
 
 
Limited Partner's Units (2)
 
 
 
 
 
 
Cash paid
 
54,525

 
89,378

 
101,561

 
 
 
 
 
 
 
General Partner's Units (3)
 
 
 
 
 
 
Cash paid
 
723

 
3,488

 
2,551

Additional Blackwater acquisition consideration
 

 

 
5,000

 
 
 
 
 
 
 
Summary
 
 
 
 
 
 
Cash paid
 
80,310

 
116,293

 
112,136

Accrued (1)
 
7,444

 
8,076

 
9,850

Paid-in-kind
 
8,076

 
12,222

 
16,093

Additional Blackwater acquisition consideration
 

 

 
5,000


_______________________
(1)  
Can be paid in either Cash, PIK, or a combination of both. PIK payments on the Series C Units require consent of the holder.
(2) 
Limited Partner distributions do not include $21.7 million and $12.9 million of distributions declared in the fourth quarter of 2017 and 2016, respectively, which were distributed in the subsequent quarter.
(3) 
General Partner distributions do not include $0.3 million and $0.2 million of distributions declared in the fourth quarter of 2017 and 2016, respectively, which were distributed in the subsequent quarter.
The following table reflects distributions declared and paid through December 31, 2018 (in thousands, except per unit data):
Date Declared
 
Distribution Payment Date
 
Period for which Distribution Relates
 
General Partner
 
Limited Partner
 
Total Cash Distributions
 
Cash Distributions Per Common Unit
October 25, 2018
 
November 14, 2018
 
Third Quarter of 2018
 
$
74

 
$
5,464

 
$
5,538

 
$
0.1031

July 27, 2018
 
August 14, 2018
 
Second Quarter of 2018
 
$
72

 
$
5,463

 
$
5,535

 
$
0.1031

April 26, 2018
 
May 15, 2018
 
First Quarter of 2018
 
$
287

 
$
21,853

 
$
22,140

 
$
0.4125

January 26, 2018
 
February 14, 2018
 
Fourth Quarter of 2017
 
$
290

 
$
21,745

 
$
22,035

 
$
0.4125

v3.19.1
Net Loss per Limited Partner Unit (Tables)
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Schedule of earnings per share

The calculation of basic and diluted limited partners' net loss per common unit is summarized below (in thousands, except per unit amounts):
 
Years Ended December 31,
 
2018
 
2017
 
2016
Loss from continuing operations
$
(7,648
)
 
$
(262,601
)
 
$
(43,829
)
Net income attributable to noncontrolling interests
(116
)
 
(4,473
)
 
(2,766
)
Loss attributable to the Partnership
(7,764
)
 
(267,074
)
 
(46,595
)
 
 
 
 
 
 
Distributions on Series A Units
(17,608
)
 
(16,237
)
 
(19,138
)
Distributions on Series C Units
(14,898
)
 
(15,712
)
 
(9,487
)
Distributions on Series D Units

 
(1,925
)
 
(963
)
General partner's distributions
(434
)
 
(1,053
)
 
(2,550
)
General partner's share in undistributed loss
963

 
5,108

 
1,691

Loss attributable to Limited Partners
(39,741
)
 
(296,893
)
 
(77,042
)
Income (loss) from discontinued operations, including gain on sale

 
44,095

 
(4,715
)
Net loss attributable to Limited Partners
$
(39,741
)
 
$
(252,798
)
 
$
(81,757
)
 
 
 
 
 
 
Weighted average number of common units outstanding - Basic and diluted
53,136

 
52,043

 
51,176

 
 
 
 
 
 
Limited Partners' net loss per common unit - Basic and diluted
 
 
 
 
 
Loss from continuing operations
$
(0.75
)
 
$
(5.70
)
 
$
(1.51
)
Income (loss) from discontinued operations, including gain on sale

 
0.85

 
(0.09
)
Net loss per common unit
$
(0.75
)
 
$
(4.85
)
 
$
(1.60
)
 
_______________________
(1)  
Potential common unit equivalents are antidilutive for all periods. As a result, 24.1 million, 23.3 million and 23.8 million potential common unit equivalents for the years ended December 31, 2018, 2017 and 2016, respectively, have been excluded from the determination of diluted limited partners' net income per common unit.
v3.19.1
Incentive Compensation (Tables)
12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of restricted stock and restricted stock units activity

The following table summarizes activity in our phantom unit-based awards for the years ended December 31, 2018, 2017 and 2016 (in thousands, except per unit data):
 
 
Units
 
Weighted-Average Grant Date Fair Value Per Unit
 
Aggregate Intrinsic Value (1) 
Outstanding units at December 2015
 
569,759

 
$
13.15

 
$
4,609

Granted
 
1,374,226

 
2.14

 
 
Forfeited
 
(411,794
)
 
2.60

 
 
Vested
 
(286,348
)
 
12.18

 
 
Outstanding units at December 2016
 
1,245,843

 
$
4.72

 
$
22,674

LTIP associated with the acquired JPE phantom units(2)
 
312,992

 
15.73

 
 
Outstanding units at January 1, 2017
 
1,558,835

 
$
6.98

 
 
Granted
 
586,173

 
10.66

 
 
Forfeited
 
(136,053
)
 
10.52

 
 
Vested
 
(600,977
)
 
11.38

 
 
Outstanding units at December 2017
 
1,407,978

 
$
6.29

 
$
18,797

Granted
 
825,973

 
8.54

 
 
Forfeited
 
(461,338
)
 
7.24

 
 
Vested
 
(557,291
)
 
6.30

 
 
Outstanding units at December 2018(2)
 
1,215,322

 
$
7.46

 
$
3,682


_______________________
(1)  
The intrinsic value of phantom units was calculated by multiplying the closing market price of our underlying units on December 31, 2018, 2017, 2016 and 2015 by the number of phantom units.
(2)  
Including 808 of phantom units which remain outstanding from the Assumed LTIP.

Fair Value Valuation Assumptions
The Black-Scholes pricing model was used to determine the fair value of our option grants using the following assumptions:
 
Years Ended December 31,
 
2017
 
2016
Weighted average common unit price volatility
65.0
%
 
61.1
%
Expected distribution yield
11.1
%
 
12.6
%
Weighted average expected term (in years)
3.79

 
4.1

Weighted average risk-free rate
1.63
%
 
1.1
%
A Monte-Carlo pricing model was used to determine the fair value of our grants using the following assumptions:
 
December 31, 2017
Weighted average common unit price volatility (historical)
60.0
%
Expected distribution yield
13.15
%
Weighted average expected term (in years)
1 year to 5 years

Weighted average risk-free rate
1.6% to 2.1%

Options, grants in period, weighted average grant date fair value
The following table summarizes our option activity for the years ended December 31, 2018 and 2017:
 
 
Units
 
Weighted-Average Exercise Price
 
Weighted-Average Grant Date Fair Value per Unit
 
Aggregate Intrinsic Value (1) (In Thousands)
 
Weighted Average Remaining Contractual Life (Years)
Outstanding at December 31, 2016
 
275,000

 
$
9.03

 
$
0.96

 
$
2,522

 
5.0
Granted
 
15,000

 
14.85

 
3.69

 
 
 
 
Vested
 

 

 

 
 
 
 
Forfeited
 
(45,000
)
 
13.88

 
2.74

 
 
 
 
Outstanding at December 31, 2017
 
245,000

 
$
8.50

 
$
0.80

 
$
1,211

 
3.1
Granted
 

 

 

 
 
 
 
Vested
 
(3,750
)
 
14.85

 
3.69

 
 
 
 
Forfeited
 

 

 

 
 
 
 
Outstanding at December 31, 2018
 
241,250

 
$
8.40

 
$
0.76

 
$

 
0.2

_______________________
(1)  
The intrinsic value of the stock option is the amount by which the current market value of the underlying stock exceeds the exercise price (strike price) of the option. At December 31, 2018, the intrinsic value was zero.
Defined benefit plan contributions and recognized expense
The following table summarizes information regarding contributions and the expense recognized for the matching contributions, which is included in operating and maintenance expense and general and administrative expense in our statements of operations (in thousands): 
 
 
For the year ended December 31,
 
 
2018
 
2017
 
2016
Matching contributions expensed for the 401(k) Plan
 
$
2,377

 
$
2,047

 
$
1,964



Cash Retention Plan

On September 2, 2018, the Partnership implemented a long-term cash retention award for all employees holding RSU’s under the Partnership’s LTIP. At each future vesting date of time-based unvested phantom units outstanding on July 28, a cash award in the amount of $6.00 per phantom unit will also be earned.  Outstanding PSU’s are not subject to the cash retention award. The expense associated with this award will be recognized over the service period.  For the year ended December 31, 2018, approximately $3.6 million related to this plan was included in Corporate expenses in the Consolidated Statements of Operations. At December 31, 2018, remaining unamortized expense was $5.1 million.
Schedule of Performance-based Awards Activity
The following table summarizes our performance-based awards activity for the years ended December 31, 2018 and 2017:
 
 
Units
Outstanding units at December 2016
 

Granted
 
524,000

Outstanding units at December 2017
 
524,000

Forfeited
 
(124,000
)
Outstanding units at December 2018
 
400,000

v3.19.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of components of income tax (expense) benefit
Income tax expense (benefit) for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands):
 
Years Ended December 31,
 
2018
 
2017
 
2016
Current income tax expense
$
39,697

 
$
1,317

 
$
523

Deferred income tax expense (benefit)
(6,702
)
 
(82
)
 
2,057

Total income tax expense
$
32,995

 
$
1,235

 
$
2,580

 
 
 
 
 
 
Effective income tax rate
130.2
%
 
(0.5
)%
 
(6.3
)%
Schedule of effective income tax rate reconciliation
A reconciliation of our expected income tax expense calculated at the U.S. federal statutory rate of 21% for the year ended December 31, 2018, and 34% for the years ended December 31, 2017 and 2016 to our actual tax expense is as follows (in thousands, except percentages):

 
Years Ended December 31,
 
2018
 
2017
 
2016
Gain (loss) from continuing operations before income taxes
$
25,347

 
$
(261,366
)
 
$
(41,249
)
US Federal statutory tax rate
21
%
 
34
%
 
34
%
Federal income tax expense (benefit) at statutory rate
5,323

 
(88,864
)
 
(14,025
)
Reconciling items:
 
 
 
 
 
    Partnership loss not subject to income tax benefit
15,038

 
89,711

 
15,800

    State and local tax expense
9,299

 
2,664

 
800

    Goodwill
3,415

 

 

    Rate change

 
(2,369
)
 

    Other
(80
)
 
93

 
5

Income tax expense
$
32,995

 
$
1,235

 
$
2,580

Schedule of deferred tax assets and liabilities
The Partnership’s deferred tax assets and liabilities as of December 31, 2018 and 2017 are summarized below (in thousands):
 
December 31,
 
2018
 
2017
Deferred tax assets:
 
 
 
    Net operating loss carryforwards
$

 
$
6,646

    Other

 
86

    Total deferred tax assets

 
6,732

Deferred tax liabilities:
 
 
 
    Property, plant and equipment
1,421

 
14,855

    Total deferred tax liabilities
$
1,421

 
$
14,855

 
 
 
 
Deferred income tax liability, net
$
(1,421
)
 
$
(8,123
)
v3.19.1
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Future non-cancelable commitments related to certain contractual obligations
The Partnership had the following non-cancelable contractual commitments as of December 31, 2018 (in thousands):

 
 
Total
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
3.77% Senior Notes
 
$
57,516

 
$
2,233

 
$
2,299

 
$
4,430

 
$
4,579

 
$
4,733

 
$
39,242

8.50% Senior Notes(1)
 
425,000

 

 

 
425,000

 

 

 

3.97% Secured Senior Notes
 
30,270

 
1,805

 
1,852

 
1,900

 
1,952

 
2,005

 
20,756

Revolving Credit Agreement
 
514,800

 
514,800

 

 

 

 

 

Interest payments on debt (2)
 
144,003

 
43,746


43,600


41,703


2,718


2,465


9,771

Operating lease obligations(3)
 
34,938

 
8,161

 
5,067

 
3,429

 
2,536

 
1,545

 
14,200

Asset retirement obligation(4)
 
71,297

 
3,846

 

 

 

 

 
67,451

Other(5)
 
125,495

 
2,795

 
2,828

 
2,686

 
2,404

 
2,441

 
112,341

Total
 
$
1,403,319


$
577,386


$
55,646


$
479,148


$
14,189


$
13,189


$
263,761

_______________________
(1)
Upon closing of the JPE Merger, the proceeds from the 8.50% Senior Notes were used to repay the JPE Credit Agreement. On December 28, 2017, the Partnership issued an additional $125 million 8.50% Senior Notes, as discussed in Note 14. Debt Obligations.
(2)
Excludes interest on our revolving credit agreement which had an outstanding balance of $514.8 million as of December 31, 2018 with a weighted average interest rate of 6.47%.
(3)  
Not including sublease income of $4.6 million.
(4) 
In certain cases, there is insufficient information to reasonably determine the timing and/or method of settlement for purposes of estimating the fair value of the ARO. In such cases, the ARO cost is considered indeterminate because there is no data or information that can be derived from past practice, industry practice, management's experience or the asset's estimated economic life.
(5)
Represents our commitment to certain long-term services contracts.

v3.19.1
Supplemental Cash Flow Information (Tables)
12 Months Ended
Dec. 31, 2018
Supplemental Cash Flow Elements [Abstract]  
Schedule of cash flow, supplemental disclosures
Supplemental cash flows and non-cash transactions consists of the following (in thousands):
 
Years Ended December 31,
 
2018
 
2017
 
2016
Supplemental cash flow information
 
 
 
 
 
Cash paid for interest, net of capitalized interest
$
79,767

 
$
65,038

 
$
22,303

Cash paid for income taxes
14,475

 
1,041

 
530

 
 
 
 
 
 
Supplemental non-cash information
 
 
 
 
 
Investing
 
 
 
 
 
Increase (decrease) in accrued property, plant and equipment purchases
$
(385
)
 
$
(3,553
)
 
$
8,533

Assets acquired under capital lease

 

 
139

Accrued contributions to unconsolidated affiliates
(89
)
 

 

Excess of carrying value of interest in Destin above consideration paid

 
278

 

Financing
 
 
 
 
 
Contributions from an affiliate holding limited partner interests
$

 
$
4,000

 
$
7,500

Acquisitions partially funded by the issuance of common units

 
12,532

 

Issuance of common units in connection with Blackwater Transactions
4,916

 

 

Issuance of Series C Units and Warrant in connection with the Emerald Transactions

 

 
120,000

Debt assumed in connection with the Trans-Union acquisition

 
32,453

 

Accrued cash distributions on convertible preferred units

 

 
7,103

Paid-in-kind distributions on convertible preferred units
7,444

 
17,565

 
14,446

Cancellation of escrow units

 

 
6,817

Accrued distributions to NCI holders

 
(1,342
)
 

Accrued distribution from an unconsolidated affiliate

 

 
5,000

v3.19.1
Reportable Segments (Tables)
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment information for the periods
The following tables set forth our segment financial information for the periods indicated (in thousands):
 
 
December 31, 2018
 
 
Gas Gathering and Processing Services
Liquid Pipelines and Services
Natural Gas Transportation Services
Offshore Pipelines and Services
Terminalling Services
Total
Revenue
 
$
175,597

$
450,515

$
59,663

$
72,180

$
45,363

$
803,318

Gains on commodity derivatives, net
 
311

1,725




2,036

Total revenue
 
175,908

452,240

59,663

72,180

45,363

805,354

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Cost of sales
 
124,379

423,519

23,207

8,050

12,885

592,040

Direct operating expenses
 




9,664

87,677

Corporate expenses
 
 
 
 
 
 
89,706

Termination fee
 
 
 
 
 
 
17,000

Depreciation, amortization and accretion expense
 
 
 
 
 
 
87,171

Gain on sale of assets, net
 
 
 
 
 
 
(95,118
)
Impairment of long-lived assets and intangible assets
 
 
 
 
 
 
1,610

          Total operating expenses
 
 
 
 
 
 
780,086

Operating income
 
 
 
 
 
 
25,268

Other income (expense), net:
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
 
 
 
 
 
 
(82,410
)
Other income (expense), net
 
 
 
 
 
 
560

Earnings in unconsolidated affiliates
 

11,954


69,975


81,929

Income from continuing operations before income taxes
 
 
 
 
 
 
25,347

Income tax expense
 
 
 
 
 
 
(32,995
)
Loss from continuing operations
 
 
 
 
 
 
(7,648
)
Net income attributable to non-controlling interests
 
 
 
 
 
 
(116
)
Net loss attributable to the Partnership
 
 
 
 
 
 
$
(7,764
)
 
 
 
 
 
 
 

Segment gross margin
 
$
51,888

$
40,542

$
36,130

$
134,106

$
22,814



 
 
December 31, 2017
 
 
Gas Gathering and Processing Services
Liquid Pipelines and Services
Natural Gas Transportation Services
Offshore Pipelines and Services
Terminalling Services
Total
Revenue
 
$
150,252

$
343,724

$
47,899

$
55,138

$
54,541

$
651,554

(Losses) gains on commodity derivatives, net
 
(340
)
221




(119
)
Total revenue
 
149,912

343,945

47,899

55,138

54,541

651,435

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Cost of sales
 
101,981

309,166

24,516

8,993

12,715

457,371

Direct operating expenses
 




11,871

82,256

Corporate expenses
 
 
 
 
 
 
112,058

Depreciation, amortization and accretion expense
 
 
 
 
 
 
103,448

Loss on sale of assets, net
 
 
 
 
 
 
(4,063
)
Impairment of long-lived assets and intangible assets
 
 
 
 
 
 
116,609

Impairment of goodwill
 
 
 
 
 
 
77,961

          Total operating expenses
 
 
 
 
 
 
945,640

Operating loss
 
 
 
 
 
 
(294,205
)
Other income (expenses), net:
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
 
 
 
 
 
 
(66,465
)
Other income, net
 
 
 
 
 
 
36,254

Earnings in unconsolidated affiliates
 

5,226


57,824


63,050

Loss from continuing operations before income taxes
 
 
 
 
 
 
(261,366
)
Income tax expense
 
 
 
 
 
 
(1,235
)
Loss from continuing operations
 
 
 
 
 
 
(262,601
)
Income from discontinued operations including gain on disposition
 
 
 
 
 
 
44,095

Net loss
 
 
 
 
 
 
(218,506
)
Net income attributable to non-controlling interests
 
 
 
 
 
 
(4,473
)
Net loss attributable to the Partnership
 
 
 
 
 
 
$
(222,979
)
 
 
 
 
 
 
 

Segment gross margin
 
$
48,053

$
39,870

$
23,005

$
103,970

$
29,956




 
 
December 31, 2016
 
 
Gas Gathering and Processing Services
Liquid Pipelines and Services
Natural Gas Transportation Services
Offshore Pipelines and Services
Terminalling Services
Total
Revenue
 
$
120,920

$
331,287

$
40,108

$
47,314

$
51,014

$
590,643

Losses on commodity derivatives, net
 
(833
)
(341
)

(7
)
(436
)
(1,617
)
Total revenue
 
120,087

330,946

40,108

47,307

50,578

589,026

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Cost of sales
 
68,955

288,735

21,288

3,049

11,324

393,351

Direct operating expenses
 




8,205

71,544

Corporate expenses
 
 
 
 
 
 
89,438

Depreciation, amortization and accretion expense
 
 
 
 
 
 
90,882

Loss on sale of assets, net
 
 
 
 
 
 
688

Impairment of long-lived assets and intangible assets
 
 
 
 
 
 
697

Impairment of goodwill
 
 
 
 
 
 
2,654

          Total operating expenses
 
 
 
 
 
 
649,254

Operating loss
 
 
 
 
 
 
(60,228
)
Operating income (expense), net:
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
 
 
 
 
 
 
(21,433
)
Other income
 
 
 
 
 
 
254

Earnings in unconsolidated affiliates
 

2,070


38,088


40,158

Loss from continuing operations before income taxes
 
 
 
 
 
 
(41,249
)
Income tax expense
 
 
 
 
 
 
(2,580
)
Loss from continuing operations
 
 
 
 
 
 
(43,829
)
Loss from discontinued operations, net of tax
 
 
 
 
 
 
(4,715
)
Net loss
 
 
 
 
 
 
(48,544
)
Net income attributable to non-controlling interests
 
 
 
 
 
 
(2,766
)
Net loss attributable to the Partnership
 
 
 
 
 
 
$
(51,310
)
 
 
 
 
 
 
 
 
Segment gross margin
 
$
50,040

$
44,161

$
18,616

$
82,346

$
31,050

 

Reconciliation of assets from segment to consolidated
Summarized in the table below is additional information per segment (in thousands):
 
December 31,
 
2018
 
2017
Segment assets:
 
Gas Gathering and Processing Services
$
400,052

 
$
407,814

Liquid Pipelines and Services
426,831

 
421,735

Natural Gas Transportation Services
271,890

 
268,122

Offshore Pipelines and Services
531,400

 
547,283

Terminalling Services

 
235,081

Other (1)
57,523

 
43,431

Total assets
$
1,687,696

 
$
1,923,466

 
 
 
 
Investment in unconsolidated affiliates:
 
 
 
Liquid Pipelines and Services
$
69,523

 
$
38,957

Offshore Pipelines and Services
268,273

 
309,477

Total investment in unconsolidated affiliates
$
337,796

 
$
348,434

___________________________
(1)
Other assets not allocable to segments consist of restricted cash, corporate leasehold improvements and other miscellaneous assets.

The following table sets forth capital expenditures for the years ended December 31, 2018 and 2017, by segment (in thousands):
 
Year Ended December 31,
 
2018
 
2017
Capital expenditures
 
 
 
Gas Gathering and Processing Services
$
35,131

 
$
15,689

Liquid Pipelines and Services
18,750

 
9,313

Natural Gas Transportation Services
4,726

 
35,498

Offshore Pipelines and Services
24,939

 
38,300

Terminalling Services 
6,819

 
8,443

Corporate
6,257

 
6,746

Total capital expenditures(1)
$
96,622

 
$
113,989

___________________________
(1)  
Capital expenditures exclude expenditures made for the Propane Business of $3.1 million for the year 2017, as the business was sold in 2017.
v3.19.1
Quarterly Financial Data (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Schedule of quarterly financial information
Summarized unaudited quarterly financial data for 2018 and 2017 are as follows (in thousands, except per unit amounts): 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter (1)(2)(3)
Year Ended December 31, 2018 (4)
 
 
 
 
 
 
 
Total revenues
$
205,829

 
$
220,217

 
$
202,346

 
$
176,962

Operating (loss) income
(12,377
)
 
(7,641
)
 
67,164

 
(21,878
)
Net (loss) income from continuing operations, net of tax
(13,838
)
 
(17,274
)
 
38,183

 
(14,719
)
Net income attributable to noncontrolling interest
45

 
13

 
25

 
33

Net (loss) income attributable to the Partnership
(13,883
)
 
(17,287
)
 
38,158

 
(14,752
)
General Partner's Interest in net (loss) income
(181
)
 
(225
)
 
504

 
(199
)
Limited Partners' Interest in net (loss) income
$
(13,702
)
 
$
(17,062
)
 
$
37,654

 
$
(14,553
)
 
 
 
 
 
 
 
 
Limited Partners' (loss) income per unit:
 
 
 
 
 
 
 
(Loss) income from continuing operations
$
(0.42
)
 
$
(0.48
)
 
$
0.56

 
$
(0.41
)
Net (loss) income
$
(0.42
)
 
$
(0.48
)
 
$
0.56

 
$
(0.41
)
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
 
 
Total revenues
$
164,078

 
$
162,030

 
$
162,290

 
$
163,037

Operating loss
(24,457
)
 
(25,574
)
 
(20,616
)
 
(223,558
)
Net (loss) income from continuing operations, net of tax
(28,171
)
 
(25,901
)
 
11,806

 
(220,335
)
(Loss) income from discontinued operations, net of tax
(710
)
 
(1,801
)
 
44,696

 
1,910

Net income attributable to noncontrolling interest
1,303

 
1,462

 
621

 
1,087

Net (loss) income attributable to the Partnership
(30,184
)
 
(29,164
)
 
55,881

 
(219,512
)
General Partner's Interest in net (loss) income
(420
)
 
(375
)
 
697

 
(2,883
)
Limited Partners' Interest in net (loss) income
$
(29,764
)
 
$
(28,789
)
 
$
55,184

 
$
(216,629
)
 
 
 
 
 
 
 
 
Limited Partners' (loss) income per unit:
 
 
 
 
 
 
 
(Loss) income from continuing operations
$
(0.74
)
 
$
(0.69
)
 
$
0.05

 
$
(4.32
)
(Loss) income from discontinued operations
(0.01
)
 
(0.03
)
 
0.86

 
0.03

Net (loss) income
$
(0.75
)
 
$
(0.72
)
 
$
0.91

 
$
(4.29
)
_______________________ 
(1) 
We recognized no goodwill impairment charges in 2018. We recognized goodwill impairment charges of $78.0 million in the fourth quarter of 2017. See Note 10. Goodwill and Intangible Assets, Net for more information.
(2) 
We recognized asset impairment charges of $1.6 million and $116.6 million in the fourth quarters of 2018 and 2017, respectively. The $1.6 million impairment charges in 2018 are related to our property, plant and equipment, as discussed in Note 9. Property, Plant and Equipment. Of the $116.6 million impairment charges in 2017, $103.9 million are related to our property, plant and equipment and $12.7 million are related to intangible assets, as discussed in Note 9. Property, Plant and Equipment and Note 10. Goodwill and Intangible Assets, Net.
(3) 
Total revenues and cost of sales for the fourth quarter of 2017 have been reduced by approximately $13.7 million primarily due to an out-of-period adjustment recorded during the quarter related to an error in gross versus net revenue recognition.  This adjustment did not have a material impact to revenue for any prior quarters and had no impact to operating loss, net income (loss) or segment margin for any period.
(4) 
Total revenues and cost of sales for the first quarter of 2018 are overstated by approximately $10.0 million due to an error in gross versus net revenue recognition. Total revenues for the fourth quarter of 2018 have been reduced by approximately $10.0 million to correct this error out-of-period. This adjustment did not have an impact to operating (loss) income, net income (loss) or segment gross margin for any period.
In addition, net (loss) from continuing operations, net of tax for the fourth quarter of 2018 has been reduced by approximately $7.8 million primarily due to an out-of-period adjustment recorded during the quarter related to an error in recording earnings in unconsolidated affiliates. This adjustment did not have a material impact to net income (loss) or segment gross margin for any period and had no impact to revenue or operating (loss) income.
v3.19.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
segments
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Mar. 31, 2018
Dec. 28, 2017
Dec. 28, 2016
Sep. 30, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]              
Number of reportable segments | segments 5            
General partners' capital account (percent) 77.00%            
Limited partners' capital account (percent) 23.00%            
Allowance for doubtful accounts receivable $ 600 $ 200          
Bad debt expense $ 654 $ 147 $ 1,038        
Minimum              
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]              
Useful Life (in years) 3 years            
Intangible asset useful life 5 years            
Maximum              
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]              
Useful Life (in years) 40 years            
Intangible asset useful life 30 years            
8.50% Senior Notes, due 2021 | Senior Notes              
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]              
Debt instrument, interest rate (percent) 8.50% 8.50%   8.50% 8.50% 8.50%  
3.77% Senior Notes, due 2031 | Senior Notes              
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]              
Debt instrument, interest rate (percent) 3.77% 3.77%         3.77%
Excluding Impact of Sale of Propane Business              
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]              
Bad debt expense $ 700 $ 100 $ 600        
v3.19.1
New Accounting Pronouncements - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2018
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Net cash provided by (used in) investing activities       $ 248,800 $ (40,491) $ (245,689)  
Net cash provided by operating activities       $ 5,175 9,620 90,351  
Adjustment | ASU 2016-15              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Net cash provided by (used in) investing activities         2,800    
Net cash provided by operating activities         (2,800)    
Adjustment | ASU 2016-18              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Impact on restricted cash flows         298,200    
Impact on restricted cash flows           $ 318,500  
Minimum | ASU 2016-02              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Lease liability             $ 28,000
Right-of-use asset             28,000
Maximum | ASU 2016-02              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Lease liability             32,000
Right-of-use asset             $ 32,000
Propane Business | Adjustment | ASU 2016-15              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Net cash provided by (used in) investing activities         (2,500)    
Net cash provided by operating activities         $ 2,500    
Adjustment | Error in Presentation of Distributions from Unconsolidated Affiliates in Condensed Consolidated Statements of Cash Flows              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Net cash provided by (used in) investing activities $ (2,500) $ 1,000 $ (6,300)        
v3.19.1
Revenue Recognition - Effect of ASC 606 Adoption on Consolidated Income Statement (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Revenues                 $ 783,016    
Revenues $ 176,962 $ 202,346 $ 220,217 $ 205,829 $ 163,037 $ 162,290 $ 162,030 $ 164,078 805,354 $ 651,435 $ 589,026
Cost of sales                 592,040 457,371 393,351
Direct operating expenses                 87,677 82,256 71,544
Operating (loss) income (21,878) 67,164 (7,641) (12,377) (223,558) (20,616) (25,574) (24,457) 25,268 (294,205) (60,228)
Net (loss) income attributable to the Partnership (14,752) 38,158 (17,287) (13,883) (219,512) 55,881 (29,164) (30,184) (7,764) (222,979) (51,310)
General Partner's Interest in net (loss) income (199) 504 (225) (181) (2,883) 697 (375) (420) (101) (2,981) (233)
Limited Partners' Interest in net (loss) income $ (14,553) $ 37,654 $ (17,062) $ (13,702) $ (216,629) $ 55,184 $ (28,789) $ (29,764) (7,663) (219,998) (51,077)
Commodity sales                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Revenues                 610,042 496,902 439,412
Services                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Revenues                 172,974    
Revenues                 193,276 $ 154,652 $ 151,231
Adjustments | ASU 2014-09                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Cost of sales                 18,362    
Direct operating expenses                 (12,985)    
Operating (loss) income                 (2,352)    
Net (loss) income attributable to the Partnership                 (2,352)    
General Partner's Interest in net (loss) income                 (31)    
Limited Partners' Interest in net (loss) income                 (2,321)    
Adjustments | ASU 2014-09 | Commodity sales                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Revenues                 34,093    
Adjustments | ASU 2014-09 | Services                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Revenues                 (31,067)    
Amounts Without Adoption of Topic 606                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Cost of sales                 610,402    
Direct operating expenses                 74,692    
Operating (loss) income                 22,916    
Net (loss) income attributable to the Partnership                 (10,116)    
General Partner's Interest in net (loss) income                 (132)    
Limited Partners' Interest in net (loss) income                 (9,984)    
Amounts Without Adoption of Topic 606 | Commodity sales                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Revenues                 644,135    
Amounts Without Adoption of Topic 606 | Services                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Revenues                 $ 162,209    
v3.19.1
Revenue Recognition - Effect of ASC 606 Adoption on Consolidated Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Accounts receivable, net $ 76,632 $ 98,132
Unbilled revenue 0  
Other current assets 27,422 26,386
Other assets 17,403 17,874
Other long-term liabilities 18,491 $ 2,080
ASU 2014-09 | Adjustments    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Accounts receivable, net (61,182)  
Unbilled revenue 61,182  
Other current assets (252)  
Other assets (8,586)  
Other long-term liabilities (14,431)  
ASU 2014-09 | Amounts Without Adoption of Topic 606    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Accounts receivable, net 15,450  
Unbilled revenue 61,182  
Other current assets 27,170  
Other assets 8,817  
Other long-term liabilities $ 4,060  
v3.19.1
Revenue Recognition - Disaggregated Revenues (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers $ 783,016    
Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 610,042 $ 496,902 $ 439,412
Gas Gathering and Processing Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 21,441    
Transportation      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 90,510    
Terminalling and storage      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 34,267    
Other services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 26,756    
Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 172,974    
Gas Gathering and Processing Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 156,345    
Gas Gathering and Processing Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 131,475    
Gas Gathering and Processing Services | Gas Gathering and Processing Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 20,178    
Gas Gathering and Processing Services | Transportation      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 1,872    
Gas Gathering and Processing Services | Terminalling and storage      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Gas Gathering and Processing Services | Other services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 2,820    
Gas Gathering and Processing Services | Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 24,870    
Liquid Pipelines and Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 450,515    
Liquid Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 428,977    
Liquid Pipelines and Services | Gas Gathering and Processing Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Liquid Pipelines and Services | Transportation      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 17,243    
Liquid Pipelines and Services | Terminalling and storage      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 3,360    
Liquid Pipelines and Services | Other services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 935    
Liquid Pipelines and Services | Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 21,538    
Natural Gas Transportation Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 59,663    
Natural Gas Transportation Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 25,617    
Natural Gas Transportation Services | Gas Gathering and Processing Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Natural Gas Transportation Services | Transportation      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 33,626    
Natural Gas Transportation Services | Terminalling and storage      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Natural Gas Transportation Services | Other services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 420    
Natural Gas Transportation Services | Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 34,046    
Offshore Pipelines and Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 71,130    
Offshore Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 10,886    
Offshore Pipelines and Services | Gas Gathering and Processing Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 1,263    
Offshore Pipelines and Services | Transportation      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 37,769    
Offshore Pipelines and Services | Terminalling and storage      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Offshore Pipelines and Services | Other services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 21,212    
Offshore Pipelines and Services | Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 60,244    
Terminalling Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 45,363    
Terminalling Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 13,087    
Terminalling Services | Gas Gathering and Processing Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Terminalling Services | Transportation      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Terminalling Services | Terminalling and storage      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 30,907    
Terminalling Services | Other services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 1,369    
Terminalling Services | Services      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 32,276    
Natural gas | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 45,622    
Natural gas | Gas Gathering and Processing Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 10,068    
Natural gas | Liquid Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Natural gas | Natural Gas Transportation Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 25,608    
Natural gas | Offshore Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 9,946    
Natural gas | Terminalling Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
NGLs | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 76,774    
NGLs | Gas Gathering and Processing Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 76,631    
NGLs | Liquid Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
NGLs | Natural Gas Transportation Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
NGLs | Offshore Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 143    
NGLs | Terminalling Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Condensate | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 44,511    
Condensate | Gas Gathering and Processing Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 43,823    
Condensate | Liquid Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Condensate | Natural Gas Transportation Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Condensate | Offshore Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 688    
Condensate | Terminalling Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Crude oil | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 428,977    
Crude oil | Gas Gathering and Processing Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Crude oil | Liquid Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 428,977    
Crude oil | Natural Gas Transportation Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Crude oil | Offshore Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Crude oil | Terminalling Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Other sales | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 14,158    
Other sales | Gas Gathering and Processing Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 953    
Other sales | Liquid Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 0    
Other sales | Natural Gas Transportation Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 9    
Other sales | Offshore Pipelines and Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 109    
Other sales | Terminalling Services | Commodity sales      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers $ 13,087    
v3.19.1
Revenue Recognition - Reconciliation of Revenues from Contracts with Customers to Segment Revenues (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenues from contracts with customers                 $ 783,016    
Revenues generated through operating lease arrangements                 20,302    
Gains (losses) on commodity derivatives, net                 2,036 $ (119) $ (1,617)
Total revenue $ 176,962 $ 202,346 $ 220,217 $ 205,829 $ 163,037 $ 162,290 $ 162,030 $ 164,078 805,354 $ 651,435 $ 589,026
Gas Gathering and Processing Services                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenues from contracts with customers                 156,345    
Revenues generated through operating lease arrangements                 19,252    
Gains (losses) on commodity derivatives, net                 311    
Total revenue                 175,908    
Liquid Pipelines and Services                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenues from contracts with customers                 450,515    
Revenues generated through operating lease arrangements                 0    
Gains (losses) on commodity derivatives, net                 1,725    
Total revenue                 452,240    
Natural Gas Transportation Services                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenues from contracts with customers                 59,663    
Revenues generated through operating lease arrangements                 0    
Gains (losses) on commodity derivatives, net                 0    
Total revenue                 59,663    
Offshore Pipelines and Services                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenues from contracts with customers                 71,130    
Revenues generated through operating lease arrangements                 1,050    
Gains (losses) on commodity derivatives, net                 0    
Total revenue                 72,180    
Terminalling Services                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenues from contracts with customers                 45,363    
Revenues generated through operating lease arrangements                 0    
Gains (losses) on commodity derivatives, net                 0    
Total revenue                 $ 45,363    
v3.19.1
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2018
Change in Contract with Customer, Asset [Abstract]    
Balance at December 31, 2017 $ 0  
Topic 606 implementation 2,555  
Additions 6,283  
Balances at December 31, 2018 8,838  
Change in Contract with Customer, Liability [Abstract]    
Balance at December 31, 2017 2,136  
Topic 606 implementation 13,257  
Amounts recognized as revenue (2,602)  
Additions 2,823  
Balances at December 31, 2018 15,614  
Contract with Customer, Asset, Net [Abstract]    
Current   $ 252
Non-current   8,586
Contract with Customer, Asset, Net 0 8,838
Contract with Customer, Liability [Abstract]    
Current   409
Non-current   15,205
Contract with Customer, Liability $ 2,136 $ 15,614
v3.19.1
Revenue Recognition - Remaining Performance Obligation (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
Revenue from Contract with Customer [Abstract]  
Timing of revenue recognition Certain contracts have not been presented in the table above due to the term being one year or less and due to variability in the amount of performance obligation remaining, variability in the timing of recognition or variability in consideration.
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 35,704
Expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 34,673
Expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 32,587
Expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 32,316
Expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 32,347
Expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 185,147
Expected timing of satisfaction
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 352,774
Gas Gathering and Processing Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 12,677
Expected timing of satisfaction 1 year
Gas Gathering and Processing Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 12,677
Expected timing of satisfaction 1 year
Gas Gathering and Processing Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 12,654
Expected timing of satisfaction 1 year
Gas Gathering and Processing Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 12,401
Expected timing of satisfaction 1 year
Gas Gathering and Processing Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 12,401
Expected timing of satisfaction 1 year
Gas Gathering and Processing Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 5,943
Expected timing of satisfaction
Gas Gathering and Processing Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 68,753
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 21,379
Expected timing of satisfaction 1 year
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 20,436
Expected timing of satisfaction 1 year
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 19,933
Expected timing of satisfaction 1 year
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 19,915
Expected timing of satisfaction 1 year
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 19,946
Expected timing of satisfaction 1 year
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 179,204
Expected timing of satisfaction
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 280,813
Other services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 1,648
Expected timing of satisfaction 1 year
Other services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 1,560
Expected timing of satisfaction 1 year
Other services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 0
Expected timing of satisfaction 1 year
Other services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 0
Expected timing of satisfaction 1 year
Other services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 0
Expected timing of satisfaction 1 year
Other services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 0
Expected timing of satisfaction
Other services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Total $ 3,208
v3.19.1
Acquisitions - Southcross Energy Partners, L.P. Termination Fee (Details) - USD ($)
$ in Millions
1 Months Ended
Aug. 31, 2018
Oct. 31, 2017
Business Combinations [Abstract]    
Consideration for Contribution Agreement   $ 818
Payment for termination fee $ 17  
v3.19.1
Acquisitions - JP Energy Partners Merger (Details)
Mar. 08, 2017
shares
Dec. 31, 2018
shares
Dec. 31, 2017
shares
Dec. 31, 2016
shares
Business Acquisition [Line Items]        
General partners' interest units issued (in shares)   981,000 965,000  
Investors not affiliated        
Business Acquisition [Line Items]        
Merger agreement, conversion ratio 0.5775      
Affiliated Holders        
Business Acquisition [Line Items]        
Merger agreement, conversion ratio 0.5225      
General Partner        
Business Acquisition [Line Items]        
General partners' interest units issued (in shares) 20,200,000 16,326 284,886 143,900
Affiliated Entity | General Partner        
Business Acquisition [Line Items]        
General partners' interest units issued (in shares) 9,800,000      
v3.19.1
Acquisitions - Viosca Knoll Gathering System (Details) - Viosca Knoll
$ in Thousands
Jun. 02, 2017
USD ($)
Business Acquisition [Line Items]  
Acquired interest (percent) 100.00%
Consideration transferred $ 32,000
Property, plant and equipment 32,286
Liability (286)
Total cash consideration 32,000
Pipelines and right-of-way  
Business Acquisition [Line Items]  
Property, plant and equipment 13,433
Equipment  
Business Acquisition [Line Items]  
Property, plant and equipment $ 18,853
v3.19.1
Acquisitions - Panther (Details)
$ in Thousands
Aug. 08, 2017
USD ($)
mi
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Business Acquisition [Line Items]        
Goodwill   $ 51,723 $ 128,866 $ 202,135
Panther Asset Management LLC (Panther)        
Business Acquisition [Line Items]        
Acquired interest (percent) 100.00%      
Consideration transferred $ 60,900      
Cash 39,100      
Estimated fair value of common units issued 12,500      
Assumed liabilities and working capital $ 9,200      
Length of pipeline | mi 1,000      
Fair value of acquired noncontrolling interest $ 28,597      
Property, plant and equipment 19,497      
Intangibles (customer relationships) 5,984      
Net working capital, net of cash acquired 2,095      
Goodwill 4,692      
Total cash consideration $ 60,865      
MPOG        
Business Acquisition [Line Items]        
Acquired interest (percent)     33.30%  
Ownership interest (percent) 100.00%   100.00%  
Excess of fair value over historical carrying value $ 36,000      
Ampam        
Business Acquisition [Line Items]        
Excess of fair value over historical carrying value 4,600      
Fair value of acquired noncontrolling interest $ 28,600      
Matagorda System        
Business Acquisition [Line Items]        
Ownership interest (percent) 50.00%      
v3.19.1
Acquisitions - Delta House Investment (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 29, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Mar. 08, 2017
Dec. 31, 2015
Business Acquisition [Line Items]            
Payments to acquire equity method investments   $ 6,140 $ 81,517 $ 150,179    
Investments     77,702 270,742    
Issuance of units   $ 0 $ 0 34,413    
General partners' interest units issued (in shares)   981,000 965,000      
Proceeds on revolving credit agreements   $ 392,400 $ 583,809 425,100    
Investment in unconsolidated affiliates   337,796 348,434 291,987   $ 63,704
Paid in kind unit distributions   38 86,335      
Earnings in unconsolidated affiliates   81,929 63,050 40,158    
Distributions from unconsolidated affiliates   $ 79,361 $ 60,229 $ 40,158    
FPS            
Business Acquisition [Line Items]            
Percentage ownership (percent)   35.70% 35.70% 20.10%    
Investments     $ 22,538 $ 55,461    
Equity method investment, distribution percentage   100.00%        
Investment in unconsolidated affiliates   $ 91,087 90,412 64,483   $ 33,465
Earnings in unconsolidated affiliates   $ 23,029 $ 28,794 $ 21,022    
Delta House            
Business Acquisition [Line Items]            
Percentage ownership (percent)   35.70%        
Payments to acquire equity method investments $ 125,400          
Acquired interest (percent) 15.50%          
Investment in unconsolidated affiliates $ 49,800          
Paid in kind unit distributions $ 75,600          
Earnings in unconsolidated affiliates   $ 41,300        
Distributions from unconsolidated affiliates   $ 43,700        
Arclight Capital Partners L L C | Delta House            
Business Acquisition [Line Items]            
Percentage ownership (percent)   23.30%        
General Partner            
Business Acquisition [Line Items]            
General partners' interest units issued (in shares)   16,326 284,886 143,900 20,200,000  
Paid in kind unit distributions   $ 38 $ 86,335      
Class B Units | FPS            
Business Acquisition [Line Items]            
Equity method investment, distribution percentage   7.00%        
v3.19.1
Acquisitions - Emerald Transactions (Details) - USD ($)
$ in Thousands
12 Months Ended
Oct. 27, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Business Acquisition [Line Items]          
Payments to acquire equity method investments   $ 6,140 $ 81,517 $ 150,179  
Issuance of Series C Units and Warrant in connection with the Emerald Transactions   0 0 120,000  
Investments     77,702 270,742  
Investment in unconsolidated affiliates   $ 337,796 348,434 291,987 $ 63,704
General Partner's contribution for acquisition     $ 278 $ 990  
Destin          
Business Acquisition [Line Items]          
Percentage ownership (percent)   66.70% 66.70% 49.70%  
Investments     $ 30,240 $ 122,830  
Investment in unconsolidated affiliates   $ 114,351 $ 124,245 $ 110,882 0
Tri-States          
Business Acquisition [Line Items]          
Percentage ownership (percent)   16.70% 16.70% 16.70%  
Investments     $ 0 $ 56,681  
Investment in unconsolidated affiliates   $ 51,329 $ 53,057 $ 55,022 0
Wilprise          
Business Acquisition [Line Items]          
Percentage ownership (percent)   25.30% 25.30% 25.30%  
Investments     $ 0 $ 5,064  
Investment in unconsolidated affiliates   $ 4,507 $ 4,689 $ 4,944 0
Okeanos          
Business Acquisition [Line Items]          
Percentage ownership (percent)   66.70% 66.70% 66.70%  
Investments     $ 0 $ 27,451  
Investment in unconsolidated affiliates   $ 20,641 22,445 27,059 $ 0
Destin          
Business Acquisition [Line Items]          
Percentage ownership (percent) 17.00%        
Payments to acquire equity method investments $ 30,000        
Investment in unconsolidated affiliates 30,300        
Ownership interest (percent)   66.70%      
General Partner          
Business Acquisition [Line Items]          
General Partner's contribution for acquisition     $ 278 $ 990  
General Partner | Destin          
Business Acquisition [Line Items]          
General Partner's contribution for acquisition $ 300        
American Midstream Emerald, LLC | Destin          
Business Acquisition [Line Items]          
Acquired interest (percent) 17.00%        
Consideration transferred $ 30,000        
v3.19.1
Acquisitions - Trans-Union (Details)
MMBTU in Thousands, $ in Millions
Nov. 03, 2017
USD ($)
MMBTU
Business Acquisition [Line Items]  
Throughput Capacity, Energy Per Day | MMBTU 546
Trans-Union Pipeline, L.P. (“Trans-Union”)  
Business Acquisition [Line Items]  
Acquired interest (percent) 100.00%
Consideration transferred $ 49.4
Cash 16.9
Non-recourse debt assumed $ 32.5
Debt instrument, interest rate (percent) 3.97%
v3.19.1
Dispositions - Narrative (Details)
$ in Thousands
12 Months Ended
Dec. 20, 2018
USD ($)
Nov. 15, 2018
USD ($)
Jul. 31, 2018
USD ($)
Sep. 01, 2017
USD ($)
location
Feb. 01, 2016
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Transaction costs             $ 9,100  
Propane Marketing Services | Discontinued Operations, Disposed of by Sale                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Proceeds from divestiture     $ 208,600 $ 170,000        
Transaction costs     5,700 2,500        
(Gain) loss on sale of assets     99,100 $ 47,400   $ 47,434 $ 0  
Tax expense associated with the gain on disposal     $ 29,800          
Refined Products | Discontinued Operations, Disposed of by Sale                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Proceeds from divestiture $ 125,000 $ 125,000            
Transaction costs 3,700              
(Gain) loss on sale of assets $ (3,500)              
Mid-Continental                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
(Gain) loss on sale of assets               $ (12,900)
Cash proceeds from divestiture of business         $ 9,700      
Propane Business | Propane Marketing Services | Discontinued Operations, Disposed of by Sale                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Number of service locations divested | location       40        
v3.19.1
Dispositions - Consolidated Statement of Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jul. 31, 2018
Sep. 01, 2017
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Loss from discontinued operations before income tax expense     $ 1,910 $ 44,696 $ (1,801) $ (710) $ 0 $ 44,095 $ (4,715)  
Propane Marketing Services | Discontinued Operations, Disposed of by Sale                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Total revenues               87,520 137,896  
Costs of sales               38,961 49,672  
Direct operating expenses               35,177 51,828  
Corporate expenses               7,174 9,992  
Impairment of goodwill               0 12,802  
Depreciation, amortization and accretion               9,823 15,936  
(Gain) loss on sale of assets, net               (55) 2,182  
Total expenses               91,080 142,412  
Operating loss               (3,560) (4,516)  
Interest expense               (36) (36)  
Other income               316 374  
Loss from discontinued operations before income tax expense               (3,280) (4,178)  
Income tax (expense) benefit               (59) 2  
Net loss from discontinued operations               (3,339) (4,176)  
Partnership's gain from the sale of discontinued operations $ 99,100 $ 47,400           47,434 0  
Partnership's income (loss) from discontinued operations, including gain on sale               $ 44,095 (4,176)  
Mid-Continental                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Total revenues                 11,495  
Costs of sales                 11,687  
Direct operating expenses                 203  
Depreciation, amortization and accretion                 211  
(Gain) loss on sale of assets, net                 (114)  
Total expenses                 11,987  
Operating loss                 (492)  
Loss from discontinued operations before income tax expense                 (539)  
Other expense                 (47)  
Income tax (expense) benefit                 0  
Net loss from discontinued operations                 $ (539)  
Partnership's gain from the sale of discontinued operations                   $ (12,900)
v3.19.1
Dispositions - Selected Financial Information (Details) - Propane Marketing Services - Discontinued Operations, Disposed of by Sale - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Depreciation $ 8,074 $ 13,108
Amortization 1,749 2,828
Capital expenditures 3,143 6,549
Impairment of goodwill 0 12,802
(Gain) loss on sale of assets (55) 2,182
Unrealized (gain) loss on derivative contracts, net $ 0 $ (1,072)
v3.19.1
Dispositions - Reconciliation of Income (Loss) From Discontinued Operations (Details) - Mid-Continental - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
(Gain) loss on sale of assets   $ (12,900)
Net loss from discontinued operations $ (539)  
v3.19.1
Concentration of Credit Risk (Details) - Sales Revenue, Net - Customer Concentration Risk
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Customer A      
Revenue, Major Customer      
Entity-wide revenue by major customer (percent) 27.00%    
Customer B      
Revenue, Major Customer      
Entity-wide revenue by major customer (percent) 19.00% 23.00% 21.00%
Customer C      
Revenue, Major Customer      
Entity-wide revenue by major customer (percent)   13.00%  
Customer D      
Revenue, Major Customer      
Entity-wide revenue by major customer (percent)     13.00%
v3.19.1
Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Other current assets    
Prepaid expenses $ 8,395 $ 8,944
Current portion of deferred debt issuance costs 5,433 0
Insurance receivables 649 1,741
Due from related parties 16 4,362
Other receivables 6,975 5,187
Risk management assets 4,768 3,186
Inventory 1,186 2,966
Total other current assets $ 27,422 $ 26,386
v3.19.1
Risk Management Activities (Commodity Derivatives) (Details) - bbl
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Crude oil | Commodity Contract    
Derivative [Line Items]    
Derivative notional volume 208,000,000 0
v3.19.1
Risk Management Activities (Details Textual) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Derivative [Line Items]          
Amortization of Weather Derivative Premium     $ 1,045 $ 1,030 $ 966
Interest rate swap          
Derivative [Line Items]          
Notional Amount     550,000 550,000  
Weather Contract          
Derivative [Line Items]          
Derivative instruments not designated as hedging instruments, potential cash proceeds from Contract $ 20,000 $ 30,000      
Payments of derivative issuance costs     $ 1,000 1,100  
Term of Contract     1 year    
Amortization of Weather Derivative Premium     $ 500 $ 500  
v3.19.1
Risk Management Activities (Fair Value of Commodity Derivatives) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Derivative [Line Items]    
Derivative asset, gross derivative asset $ 10,785 $ 11,993
Derivative liability, gross derivative liabilities (2) 0
Commodity derivative instruments, net | Accrued expenses and other current liabilities    
Derivative [Line Items]    
Derivative asset, gross derivative asset 0 0
Derivative liability, gross derivative liabilities (2) 0
Interest rate swap | Other current assets    
Derivative [Line Items]    
Derivative asset, gross derivative asset 4,314 2,677
Derivative liability, gross derivative liabilities 0 0
Interest rate swap | Other assets, net    
Derivative [Line Items]    
Derivative asset, gross derivative asset 6,017 8,807
Derivative liability, gross derivative liabilities 0 0
Weather Contract | Other current assets    
Derivative [Line Items]    
Derivative asset, gross derivative asset 454 509
Derivative liability, gross derivative liabilities $ 0 $ 0
v3.19.1
Risk Management Activities (Realized and Unrealized Gains (Losses)) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Derivatives, Fair Value [Line Items]      
Loss on commodity derivatives, net $ 2,036 $ (119) $ (1,617)
Commodity derivative instruments, net      
Derivatives, Fair Value [Line Items]      
Loss on commodity derivatives, net 6,887 (1,060) (2,679)
Gain (loss) on derivatives, unrealized (1,156) 1,109 10,327
Commodity derivative instruments, net | Gains (losses) on commodity derivatives, net      
Derivatives, Fair Value [Line Items]      
Loss on commodity derivatives, net 2,038 (119) (1,569)
Gain (loss) on derivatives, unrealized (2) 0 (48)
Commodity derivative instruments, net | Interest expense, net of capitalized interest      
Derivatives, Fair Value [Line Items]      
Loss on commodity derivatives, net 5,894 89 (144)
Gain (loss) on derivatives, unrealized (1,154) 1,109 10,375
Commodity derivative instruments, net | Direct operating and corporate expenses      
Derivatives, Fair Value [Line Items]      
Loss on commodity derivatives, net (1,045) (1,030) (966)
Gain (loss) on derivatives, unrealized $ 0 $ 0 $ 0
v3.19.1
Property, Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross $ 1,375,566 $ 1,436,463
Less accumulated depreciation (377,858) (340,878)
Property, plant and equipment, net 997,708 1,095,585
Land    
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross 14,635 18,145
Construction in progress    
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross 55,295 55,622
Transportation equipment    
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross 21,012 22,697
Buildings and improvements    
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross 11,503 16,235
Processing and treating plants    
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross 125,008 123,138
Pipelines and compressors    
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross 1,037,889 974,301
Storage    
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross 44,431 146,105
Equipment    
Property, Plant and Equipment, Net [Abstract]    
Property plant and equipment gross $ 65,793 $ 80,220
Minimum    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 3 years  
Minimum | Transportation equipment    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 5 years  
Minimum | Buildings and improvements    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 4 years  
Minimum | Processing and treating plants    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 8 years  
Minimum | Pipelines and compressors    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 3 years  
Minimum | Storage    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 3 years  
Minimum | Equipment    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 5 years  
Maximum    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 40 years  
Maximum | Transportation equipment    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 15 years  
Maximum | Buildings and improvements    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 40 years  
Maximum | Processing and treating plants    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 40 years  
Maximum | Pipelines and compressors    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 40 years  
Maximum | Storage    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 40 years  
Maximum | Equipment    
Property, Plant and Equipment, Net [Abstract]    
Useful Life (in years) 20 years  
v3.19.1
Property, Plant and Equipment, Net (Asset Impairments and Insurance Proceeds) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]          
Property plant and equipment gross $ 1,375,566 $ 1,436,463 $ 1,375,566 $ 1,436,463  
Depreciation     72,000 76,900 $ 69,700
Interest costs capitalized     2,800 2,500 2,700
Asset impairment charges 1,600 116,600     700
Adjustment          
Property, Plant and Equipment [Line Items]          
Depreciation       8,100 $ 13,200
FERC Regulated Interstate and Intrastate Assets          
Property, Plant and Equipment [Line Items]          
Property plant and equipment gross $ 382,000 367,600 382,000 $ 367,600  
Property, Plant and Equipment          
Property, Plant and Equipment [Line Items]          
Asset impairment charges   103,900      
Intangible Assets          
Property, Plant and Equipment [Line Items]          
Asset impairment charges   12,700      
Offshore Pipelines and Services | Property, Plant and Equipment          
Property, Plant and Equipment [Line Items]          
Asset impairment charges     100    
Gas Gathering and Processing Services | Property, Plant and Equipment          
Property, Plant and Equipment [Line Items]          
Asset impairment charges   97,800      
Natural Gas Transportation Services | Property, Plant and Equipment          
Property, Plant and Equipment [Line Items]          
Asset impairment charges   3,900      
Liquid Pipelines and Services | Property, Plant and Equipment          
Property, Plant and Equipment [Line Items]          
Asset impairment charges   $ 2,200 $ 1,500    
v3.19.1
Goodwill and Intangible Assets, Net (Details) - USD ($)
3 Months Ended 12 Months Ended 24 Months Ended
Dec. 20, 2018
Jul. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2018
Goodwill [Line Items]                
Increase (decrease) in goodwill $ (61,100,000) $ (16,300,000)            
Goodwill     $ 128,866,000 $ 202,135,000 $ 51,723,000 $ 128,866,000 $ 202,135,000 $ 51,723,000
Loss on impairment of goodwill     78,000,000   0 77,961,000 2,654,000  
Amortization of intangible assets         10,300,000 24,300,000 19,200,000  
Net unamortized intangible asset     174,010,000   $ 133,992,000 174,010,000   133,992,000
Minimum                
Goodwill [Line Items]                
Useful life         5 years      
Maximum                
Goodwill [Line Items]                
Useful life         30 years      
Adjustment                
Goodwill [Line Items]                
Amortization of intangible assets           1,700,000 2,900,000  
Customer relationships                
Goodwill [Line Items]                
Net unamortized intangible asset     80,518,000   $ 47,711,000 80,518,000   47,711,000
Dedicated acreage contract                
Goodwill [Line Items]                
Net unamortized intangible asset     10,469,000   9,620,000 $ 10,469,000   9,620,000
Storage Tank Leasing Arrangement                
Goodwill [Line Items]                
Optional renewal term of long-term contract           2 years    
Storage Tank Leasing Arrangement | Customer relationships                
Goodwill [Line Items]                
Net unamortized intangible asset     9,900,000     $ 9,900,000    
Offshore Pipelines and Services                
Goodwill [Line Items]                
Increase (decrease) in goodwill               5,000,000
Goodwill     4,692,000 0 4,974,000 4,692,000 0 4,974,000
Loss on impairment of goodwill         0 0    
Gas Gathering and Processing Services | Dedicated acreage contract                
Goodwill [Line Items]                
Impairment of intangible assets     10,800,000          
Liquid Pipelines and Services                
Goodwill [Line Items]                
Goodwill     46,749,000 113,669,000 46,749,000 46,749,000 113,669,000 $ 46,749,000
Loss on impairment of goodwill       $ 2,700,000 $ 0 77,961,000    
Liquid Pipelines and Services | Customer relationships                
Goodwill [Line Items]                
Impairment of intangible assets     $ 1,900,000          
Silver Dollar Asset                
Goodwill [Line Items]                
Loss on impairment of goodwill           61,400,000    
COSL Asset                
Goodwill [Line Items]                
Loss on impairment of goodwill           $ 16,600,000    
Pinnacle Propane Express Business                
Goodwill [Line Items]                
Loss on impairment of goodwill             $ 12,800,000  
v3.19.1
Goodwill and Intangible Assets, Net - Schedule of Goodwill Activity (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Roll Forward]          
Goodwill, gross     $ 206,827,000    
Accumulated impairment losses     (77,961,000)    
Goodwill beginning balance     128,866,000 $ 202,135,000  
Transfers       0  
Sale of assets     (77,425,000)    
Additions     282,000 4,692,000  
Impairment charges $ (78,000,000)   0 (77,961,000) $ (2,654,000)
Goodwill ending balance 128,866,000 $ 202,135,000 51,723,000 128,866,000 202,135,000
Accumulated impairment losses (77,961,000)   (77,961,000) (77,961,000)  
Goodwill, gross 206,827,000   129,684,000 206,827,000  
Liquid Pipelines and Services          
Goodwill [Roll Forward]          
Goodwill, gross     124,710,000    
Accumulated impairment losses     (77,961,000)    
Goodwill beginning balance     46,749,000 113,669,000  
Transfers       11,041,000  
Sale of assets     0    
Additions     0 0  
Impairment charges   (2,700,000) 0 (77,961,000)  
Goodwill ending balance 46,749,000 113,669,000 46,749,000 46,749,000 113,669,000
Accumulated impairment losses (77,961,000)   (77,961,000) (77,961,000)  
Goodwill, gross 124,710,000   124,710,000 124,710,000  
Offshore Pipelines and Services          
Goodwill [Roll Forward]          
Goodwill, gross     4,692,000    
Accumulated impairment losses     0    
Goodwill beginning balance     4,692,000 0  
Transfers       0  
Sale of assets     0    
Additions     282,000 4,692,000  
Impairment charges     0 0  
Goodwill ending balance 4,692,000 0 4,974,000 4,692,000 0
Accumulated impairment losses 0   0 0  
Goodwill, gross 4,692,000   4,974,000 4,692,000  
Terminalling Services          
Goodwill [Roll Forward]          
Goodwill, gross     77,425,000    
Accumulated impairment losses     0    
Goodwill beginning balance     77,425,000 88,466,000  
Transfers       (11,041,000)  
Sale of assets     (77,425,000)    
Additions     0 0  
Impairment charges     0 0  
Goodwill ending balance 77,425,000 $ 88,466,000 0 77,425,000 $ 88,466,000
Accumulated impairment losses 0   0 0  
Goodwill, gross $ 77,425,000   $ 0 $ 77,425,000  
v3.19.1
Goodwill and Intangible Assets, Net - Schedule of intangible assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount $ 214,065 $ 260,868
Accumulated amortization (80,073) (86,858)
Net carrying amount 133,992 174,010
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 64,744 110,483
Accumulated amortization (17,033) (29,965)
Net carrying amount 47,711 80,518
Customer contracts    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 94,692 94,692
Accumulated amortization (53,156) (48,173)
Net carrying amount 41,536 46,519
Dedicated acreage    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 42,547 42,547
Accumulated amortization (7,592) (6,216)
Net carrying amount 34,955 36,331
Collaborative arrangements    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 11,884 11,884
Accumulated amortization (2,264) (1,415)
Net carrying amount 9,620 10,469
Other    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 198 1,262
Accumulated amortization (28) (1,089)
Net carrying amount $ 170 $ 173
v3.19.1
Goodwill and Intangible Assets, Net - Estimated Future Amortization Expense (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2019 $ 10,182
2020 10,182
2021 10,182
2022 9,293
2023 6,626
Thereafter $ 87,321
v3.19.1
Investment in Unconsolidated Affiliates - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 29, 2017
Aug. 08, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Mar. 08, 2017
Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]              
Payments to acquire equity method investments     $ 6,140 $ 81,517 $ 150,179    
Investments       77,702 270,742    
Issuance of convertible preferred units, net of offering costs     $ 0 $ 0 34,413    
General partners' interest units issued (in shares)     981,000 965,000      
Proceeds on revolving credit agreements     $ 392,400 $ 583,809 425,100    
Investment in unconsolidated affiliates     337,796 348,434 291,987   $ 63,704
Distributions     38 86,335      
Earnings in unconsolidated affiliates     81,929 63,050 40,158    
Distributions from unconsolidated affiliates     79,361 60,229 40,158    
Total Consideration for Issuance of Preferred Units     0 0 120,000    
Acquisitions partially funded by the issuance of common units     $ 0 $ 12,532 $ 0    
Cayenne              
Schedule of Equity Method Investments [Line Items]              
Proceeds from divestiture of interest   $ 5,000          
Economic interest (percent)   50.00%          
Voting rights (percent)   50.00%          
Percentage ownership (percent)     50.00% 50.00% 0.00%    
Investments       $ 0 $ 0    
Investment in unconsolidated affiliates     $ 13,687 6,654 0   0
Earnings in unconsolidated affiliates     $ 6,740 $ 112 $ 0    
FPS              
Schedule of Equity Method Investments [Line Items]              
Percentage ownership (percent)     35.70% 35.70% 20.10%    
Investments       $ 22,538 $ 55,461    
Equity method investment, distribution percentage     100.00%        
Investment in unconsolidated affiliates     $ 91,087 90,412 64,483   33,465
Earnings in unconsolidated affiliates     $ 23,029 $ 28,794 $ 21,022    
Delta House              
Schedule of Equity Method Investments [Line Items]              
Percentage ownership (percent)     35.70%        
Payments to acquire equity method investments $ 125,400            
Acquired interest (percent) 15.50%            
Investment in unconsolidated affiliates $ 49,800            
Distributions $ 75,600            
Earnings in unconsolidated affiliates     $ 41,300        
Distributions from unconsolidated affiliates     $ 43,700        
Destin              
Schedule of Equity Method Investments [Line Items]              
Percentage ownership (percent)     66.70% 66.70% 49.70%    
Investments       $ 30,240 $ 122,830    
Investment in unconsolidated affiliates     $ 114,351 124,245 110,882   0
Earnings in unconsolidated affiliates     $ 21,807 $ 9,457 $ 3,946    
Tri-States              
Schedule of Equity Method Investments [Line Items]              
Percentage ownership (percent)     16.70% 16.70% 16.70%    
Investments       $ 0 $ 56,681    
Investment in unconsolidated affiliates     $ 51,329 53,057 55,022   0
Earnings in unconsolidated affiliates     $ 4,256 $ 4,395 $ 1,633    
Wilprise              
Schedule of Equity Method Investments [Line Items]              
Percentage ownership (percent)     25.30% 25.30% 25.30%    
Investments       $ 0 $ 5,064    
Investment in unconsolidated affiliates     $ 4,507 4,689 4,944   0
Earnings in unconsolidated affiliates     $ 957 $ 719 $ 437    
Okeanos              
Schedule of Equity Method Investments [Line Items]              
Percentage ownership (percent)     66.70% 66.70% 66.70%    
Investments       $ 0 $ 27,451    
Investment in unconsolidated affiliates     $ 20,641 22,445 27,059   $ 0
Earnings in unconsolidated affiliates     $ 12,700 $ 7,719 $ 3,642    
Targa Midstream Services, LLC (Targa) [Member] | Cayenne              
Schedule of Equity Method Investments [Line Items]              
Subsidiary's ownership interest (percent)   50.00%          
Arclight Capital Partners L L C | Delta House              
Schedule of Equity Method Investments [Line Items]              
Percentage ownership (percent)     23.30%        
General Partner              
Schedule of Equity Method Investments [Line Items]              
General partners' interest units issued (in shares)     16,326 284,886 143,900 20,200,000  
Distributions     $ 38 $ 86,335      
Class B Units | FPS              
Schedule of Equity Method Investments [Line Items]              
Equity method investment, distribution percentage     7.00%        
MPOG              
Schedule of Equity Method Investments [Line Items]              
Acquired interest (percent)       33.30%      
Ownership interest acquired (percent)   100.00%   100.00%      
v3.19.1
Investment in Unconsolidated Affiliates - Activity in Partnership's Investments in Unconsolidated Affiliates (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 348,434 $ 291,987 $ 63,704
Investments   77,702 270,742
Earnings in unconsolidated affiliates 81,929 63,050 40,158
Contributions 5,146 6,542 429
Distributions (97,713) (90,847) (83,046)
Investment in unconsolidated affiliates $ 337,796 $ 348,434 $ 291,987
FPS      
Schedule of Equity Method Investments [Line Items]      
Percentage ownership (percent) 35.70% 35.70% 20.10%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 90,412 $ 64,483 $ 33,465
Investments   22,538 55,461
Earnings in unconsolidated affiliates 23,029 28,794 21,022
Contributions 847 0 0
Distributions (23,201) (25,403) (45,465)
Investment in unconsolidated affiliates $ 91,087 $ 90,412 $ 64,483
OGL      
Schedule of Equity Method Investments [Line Items]      
Percentage ownership (percent) 35.70% 35.70% 20.10%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 46,932 $ 25,450 $ 23,060
Investments   27,289 3,255
Earnings in unconsolidated affiliates 12,440 12,536 9,260
Contributions 6 0 0
Distributions (17,184) (18,343) (10,125)
Investment in unconsolidated affiliates $ 42,194 $ 46,932 $ 25,450
Destin      
Schedule of Equity Method Investments [Line Items]      
Percentage ownership (percent) 66.70% 66.70% 49.70%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 124,245 $ 110,882 $ 0
Investments   30,240 122,830
Earnings in unconsolidated affiliates 21,807 9,457 3,946
Contributions 0 0 0
Distributions (31,701) (26,334) (15,894)
Investment in unconsolidated affiliates $ 114,351 $ 124,245 $ 110,882
Tri-States      
Schedule of Equity Method Investments [Line Items]      
Percentage ownership (percent) 16.70% 16.70% 16.70%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 53,057 $ 55,022 $ 0
Investments   0 56,681
Earnings in unconsolidated affiliates 4,256 4,395 1,633
Contributions 0 0 0
Distributions (5,984) (6,360) (3,292)
Investment in unconsolidated affiliates $ 51,329 $ 53,057 $ 55,022
Okeanos      
Schedule of Equity Method Investments [Line Items]      
Percentage ownership (percent) 66.70% 66.70% 66.70%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 22,445 $ 27,059 $ 0
Investments   0 27,451
Earnings in unconsolidated affiliates 12,700 7,719 3,642
Contributions 0 0 0
Distributions (14,504) (12,333) (4,034)
Investment in unconsolidated affiliates $ 20,641 $ 22,445 $ 27,059
Wilprise      
Schedule of Equity Method Investments [Line Items]      
Percentage ownership (percent) 25.30% 25.30% 25.30%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 4,689 $ 4,944 $ 0
Investments   0 5,064
Earnings in unconsolidated affiliates 957 719 437
Contributions 0 0 0
Distributions (1,139) (974) (557)
Investment in unconsolidated affiliates $ 4,507 $ 4,689 $ 4,944
MPOG      
Schedule of Equity Method Investments [Line Items]      
Percentage ownership (percent) 0.00% 0.00% 66.70%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 0 $ 4,147 $ 7,179
Investments   (2,365) 0
Earnings in unconsolidated affiliates 0 (682) 218
Contributions 0 0 429
Distributions 0 (1,100) (3,679)
Investment in unconsolidated affiliates $ 0 $ 0 $ 4,147
Cayenne      
Schedule of Equity Method Investments [Line Items]      
Percentage ownership (percent) 50.00% 50.00% 0.00%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]      
Investment in unconsolidated affiliates $ 6,654 $ 0 $ 0
Investments   0 0
Earnings in unconsolidated affiliates 6,740 112 0
Contributions 4,293 6,542 0
Distributions (4,000) 0 0
Investment in unconsolidated affiliates $ 13,687 $ 6,654 $ 0
v3.19.1
Investment in Unconsolidated Affiliates - Difference in Basis by Affiliate (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity $ 5,420 $ 4,807
FPS    
Schedule of Equity Method Investments [Line Items]    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity 41,762 43,815
OGL    
Schedule of Equity Method Investments [Line Items]    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity (8,424) (8,998)
Destin    
Schedule of Equity Method Investments [Line Items]    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity 826 881
Tri-States    
Schedule of Equity Method Investments [Line Items]    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity 30,587 32,092
Okeanos    
Schedule of Equity Method Investments [Line Items]    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity (57,039) (60,533)
Wilprise    
Schedule of Equity Method Investments [Line Items]    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity 1,374 1,486
Cayenne    
Schedule of Equity Method Investments [Line Items]    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity $ (3,666) $ (3,936)
v3.19.1
Investment in Unconsolidated Affiliates - Financial Information for the Partnership's Equity Investments (Balance Sheets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]    
Current assets $ 96,116 $ 80,405
Non-current assets 1,239,733 1,288,862
Current liabilities 14,700 130,904
Non-current liabilities $ 542,047 $ 436,584
v3.19.1
Investment in Unconsolidated Affiliates - Financial Information for the Partnership's Equity Investments (Statement of Operations) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]      
Revenues $ 293,659 $ 362,608 $ 331,002
Operating expenses 27,767 34,227 28,828
Net income 201,968 257,782 240,267
Income attributable to Partnership 81,316 62,474 39,341
Basis difference amount recognized 613 576 817
Earnings in unconsolidated affiliates 81,929 63,050 40,158
FPS      
Schedule of Equity Method Investments [Line Items]      
Revenues 100,497 175,582 182,059
Operating expenses 1,190 1,243 1,140
Net income 70,355 138,648 148,724
Income attributable to Partnership 25,082 30,244 21,306
Basis difference amount recognized (2,053) (1,450) (284)
Earnings in unconsolidated affiliates $ 23,029 $ 28,794 $ 21,022
Percentage ownership (percent) 35.70% 35.70% 20.10%
OGL      
Schedule of Equity Method Investments [Line Items]      
Revenues $ 39,970 $ 63,720 $ 68,381
Operating expenses 389 370 361
Net income 33,285 57,123 63,051
Income attributable to Partnership 11,866 12,322 9,279
Basis difference amount recognized 574 214 (19)
Earnings in unconsolidated affiliates $ 12,440 $ 12,536 $ 9,260
Percentage ownership (percent) 35.70% 35.70% 20.10%
Destin      
Schedule of Equity Method Investments [Line Items]      
Revenues $ 57,815 $ 45,545 $ 32,319
Operating expenses 13,741 17,841 15,315
Net income 32,792 18,036 8,272
Income attributable to Partnership 21,862 9,649 4,108
Basis difference amount recognized (55) (192) (162)
Earnings in unconsolidated affiliates $ 21,807 $ 9,457 $ 3,946
Percentage ownership (percent) 66.70% 66.70% 49.70%
Tri-States      
Schedule of Equity Method Investments [Line Items]      
Revenues $ 49,030 $ 50,505 $ 25,557
Operating expenses 8,872 9,583 6,754
Net income 34,565 35,400 15,983
Income attributable to Partnership 5,761 5,900 2,663
Basis difference amount recognized (1,505) (1,505) (1,030)
Earnings in unconsolidated affiliates $ 4,256 $ 4,395 $ 1,633
Percentage ownership (percent) 16.70% 16.70% 16.70%
Okeanos      
Schedule of Equity Method Investments [Line Items]      
Revenues $ 25,110 $ 18,040 $ 10,453
Operating expenses 1,442 1,906 1,670
Net income 13,807 6,336 1,911
Income attributable to Partnership 9,206 4,224 1,274
Basis difference amount recognized 3,494 3,495 2,368
Earnings in unconsolidated affiliates $ 12,700 $ 7,719 $ 3,642
Percentage ownership (percent) 66.70% 66.70% 66.70%
Wilprise      
Schedule of Equity Method Investments [Line Items]      
Revenues $ 5,798 $ 5,169 $ 3,276
Operating expenses 752 1,085 706
Net income 4,224 3,281 2,028
Income attributable to Partnership 1,069 830 513
Basis difference amount recognized (112) (111) (76)
Earnings in unconsolidated affiliates $ 957 $ 719 $ 437
Percentage ownership (percent) 25.30% 25.30% 25.30%
MPOG      
Schedule of Equity Method Investments [Line Items]      
Revenues $ 0 $ 4,047 $ 8,957
Operating expenses 0 2,199 2,882
Net income 0 (1,042) 298
Income attributable to Partnership 0 (695) 198
Basis difference amount recognized 0 13 20
Earnings in unconsolidated affiliates $ 0 $ (682) $ 218
Percentage ownership (percent) 0.00% 0.00% 66.70%
Cayenne      
Schedule of Equity Method Investments [Line Items]      
Revenues $ 15,439 $ 0 $ 0
Operating expenses 1,381 0 0
Net income 12,940 0 0
Income attributable to Partnership 6,470 0 0
Basis difference amount recognized 270 112 0
Earnings in unconsolidated affiliates $ 6,740 $ 112 $ 0
Percentage ownership (percent) 50.00% 50.00% 0.00%
v3.19.1
Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Payables and Accruals [Abstract]    
Capital expenditures $ 10,336 $ 10,721
Accrued interest 3,910 3,190
Current portion of asset retirement obligation 3,846 6,416
Additional Blackwater acquisition consideration 0 5,000
Taxes payable 27,522 5,263
Due to related parties 9,566 6,609
Professional fees 3,483 1,848
Royalties, gas imbalance and leases payables 4,405 7,905
Other 15,544 21,902
Total accrued expenses and other current liabilities $ 78,612 $ 68,854
v3.19.1
Asset Retirement Obligations (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Aug. 08, 2017
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]      
Balance as of January 1, $ 72,610,000 $ 50,862,000  
Additions 260,000 8,922,000  
Revision in estimate (216,000) 11,516,000  
Disposals (515,000) 0  
Expenditures (4,440,000) (697,000)  
Accretion expense 3,598,000 2,007,000  
Balance as of December 31, 71,297,000 72,610,000  
Current portion 3,846,000 6,416,000  
Non-current portion 67,451,000 66,194,000  
Assets Retirement Obligation      
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]      
Restricted cash - long term 5,000,000.0 5,000,000.0  
Panther Asset Management LLC (Panther)      
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]      
Additions   8,700,000  
Acquired interest (percent)     100.00%
MPOG      
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]      
Balance as of January 1, $ 7,000,000    
Balance as of December 31,   $ 7,000,000  
Ownership interest (percent)   100.00% 100.00%
Acquired interest (percent)   33.30%  
Interest held prior to subsequent purchase (percent)   66.70%  
v3.19.1
Debt Obligations (Outstanding Borrowings) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
May 10, 2016
Debt Instrument [Line Items]      
Total debt obligations $ 1,031,714 $ 1,218,238  
Unamortized debt issuance costs (8,009) (9,231)  
Subtotal 1,023,705 1,209,007  
Current portion of long-term debt (522,966) (7,551)  
Long-term debt 500,739 1,201,456  
Senior Notes | 8.50% Senior Notes      
Debt Instrument [Line Items]      
Total debt obligations $ 425,000 425,000  
Debt instrument, interest rate (percent) 8.50%    
Senior Notes | 3.77% Senior Notes      
Debt Instrument [Line Items]      
Total debt obligations $ 57,517 58,324  
Debt instrument, interest rate (percent) 3.77%    
Senior Notes | 3.97% Trans-Union Secured Senior Notes      
Debt Instrument [Line Items]      
Total debt obligations $ 30,270 $ 32,025  
Debt instrument, interest rate (percent) 3.97% 3.97% 3.97%
Other Debt      
Debt Instrument [Line Items]      
Total debt obligations $ 4,127 $ 4,989  
Revolving Credit Facility      
Debt Instrument [Line Items]      
Credit Agreement $ 514,800 $ 697,900  
v3.19.1
Debt Obligations - Credit Agreement (Details)
3 Months Ended 12 Months Ended
Dec. 20, 2018
USD ($)
Nov. 15, 2018
USD ($)
Jul. 31, 2018
USD ($)
Feb. 12, 2014
USD ($)
Mar. 31, 2018
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Mar. 08, 2017
USD ($)
Sep. 30, 2016
May 10, 2016
Debt Instrument [Line Items]                      
Transaction costs               $ 9,100,000      
AMID Revolving Credit Agreement                      
Debt Instrument [Line Items]                      
Required prepayment           100.00%          
Disposition threshold under amendments           $ 5,000,000          
Reduction of borrowing capacity $ 80,000,000.0   $ 200,000,000.0                
Threshold for undefined disposition           7,500,000.0          
Credit Agreement           514,800,000          
Letters of credit outstanding amount           39,300,000          
Remaining borrowing capacity           65,900,000          
Remaining borrowing capacity upon conditional increase           $ 39,800,000          
Weighted average interest rate (percent)           6.47% 4.96% 4.29%      
Percentage of cash proceeds on disposal (percent)           50.00%          
Senior Notes | 3.97% Trans-Union Secured Senior Notes                      
Debt Instrument [Line Items]                      
Debt instrument, interest rate (percent)           3.97% 3.97%       3.97%
Senior Notes | 3.77% Senior Notes, due 2031                      
Debt Instrument [Line Items]                      
Debt instrument, interest rate (percent)           3.77% 3.77%     3.77%  
Interest coverage ratio           1.20          
Revolving Credit Facility                      
Debt Instrument [Line Items]                      
Credit Agreement           $ 514,800,000 $ 697,900,000        
Consolidated secured leverage ratio           3.17          
Interest coverage ratio           2.12          
Revolving Credit Facility | JPE Revolving Credit Agreement                      
Debt Instrument [Line Items]                      
Line of credit facility, current borrowing capacity       $ 275,000,000              
Sublimit for borrowings       $ 100,000,000              
Revolving Credit Facility | JPE Revolving Credit Agreement | Federal Funds Rate                      
Debt Instrument [Line Items]                      
Basis spread on variable rate       0.50%              
Revolving Credit Facility | JPE Revolving Credit Agreement | Adjusted LIBOR                      
Debt Instrument [Line Items]                      
Basis spread on variable rate       1.00%              
Revolving Credit Facility | JPE Revolving Credit Agreement | Prime                      
Debt Instrument [Line Items]                      
Basis spread on variable rate       1.25%              
Revolving Credit Facility | JPE Revolving Credit Agreement | LIBOR                      
Debt Instrument [Line Items]                      
Basis spread on variable rate       2.25%              
Revolving Credit Facility | AMID Revolving Credit Agreement                      
Debt Instrument [Line Items]                      
Line of credit facility, maximum borrowing capacity                 $ 900,000,000.0    
Line of credit facility, maximum borrowing capacity upon increase                 $ 1,100,000,000.0    
Line of credit facility, current borrowing capacity           $ 620,000,000          
Revolving Credit Facility | AMID Revolving Credit Agreement | Eurodollar | Minimum                      
Debt Instrument [Line Items]                      
Commitment fee on undrawn portion (percentage)         0.375%            
Revolving Credit Facility | AMID Revolving Credit Agreement | Eurodollar | Maximum                      
Debt Instrument [Line Items]                      
Commitment fee on undrawn portion (percentage)         0.50%            
Component 1 | AMID Revolving Credit Agreement | Maximum                      
Debt Instrument [Line Items]                      
Ratio of indebtedness to net capital           5.0          
Component 1 | AMID Revolving Credit Agreement | LIBOR                      
Debt Instrument [Line Items]                      
Basis spread on variable rate           3.50%          
Component 2 | AMID Revolving Credit Agreement | Maximum                      
Debt Instrument [Line Items]                      
Ratio of indebtedness to net capital           5.5          
Component 2 | AMID Revolving Credit Agreement | LIBOR                      
Debt Instrument [Line Items]                      
Basis spread on variable rate           4.00%          
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Marine Liquids Terminals [Member]                      
Debt Instrument [Line Items]                      
Proceeds from divestiture     208,600,000                
Transaction costs     $ 5,700,000                
Discontinued Operations, Disposed of by Sale [Member] | Refined Products                      
Debt Instrument [Line Items]                      
Proceeds from divestiture 125,000,000 $ 125,000,000                  
Transaction costs $ 3,700,000                    
v3.19.1
Debt Obligations - Covenant Ratios (Details) - Revolving Credit Facility
Dec. 31, 2018
Debt Instrument [Line Items]  
Actual interest coverage ratio 2.12
Actual consolidated total leverage ratio 5.79
Actual consolidated secured leverage ratio 3.17
December 31, 2018  
Debt Instrument [Line Items]  
Consolidated interest coverage ratio 1.75
Consolidated total leverage ratio 6.25
Consolidated secured leverage ratio 3.75
March 31, 2019  
Debt Instrument [Line Items]  
Consolidated interest coverage ratio 1.75
Consolidated total leverage ratio 6.50
Consolidated secured leverage ratio 3.75
June 30, 2019 and thereafter  
Debt Instrument [Line Items]  
Consolidated interest coverage ratio 1.50
Consolidated total leverage ratio 5.75
Consolidated secured leverage ratio 3.50
v3.19.1
Debt Obligations - 8.50% Senior Notes (Details) - USD ($)
3 Months Ended 24 Months Ended
Dec. 28, 2016
Mar. 31, 2018
Dec. 14, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 28, 2017
Dec. 19, 2017
Debt Instrument [Line Items]              
Proceeds from issuance of long-term debt $ 294,000,000            
Debt issuance costs (6,000,000)            
Additional debt issuance costs $ (2,700,000)            
Senior Notes | 8.50% Senior Notes, due 2021              
Debt Instrument [Line Items]              
Debt instrument, interest rate (percent) 8.50% 8.50%   8.50% 8.50% 8.50%  
Proceeds from issuance of senior long-term debt $ 291,300,000            
Additional periodic accrual rate per the registration rights agreement 9percent)   0.25%          
Debt instrument, redemption price, percentage     108.50%        
Debt instrument, redemption price, equity offer period     180 days        
Debt instrument $ 300,000,000         $ 125,000,000  
Senior Notes | 8.50% Senior Notes, due 2021 | Maximum              
Debt Instrument [Line Items]              
Additional periodic accrual rate per the registration rights agreement 9percent)   1.00%          
Debt instrument, redemption price, percentage of principal amount redeemed     35.00%        
Senior Notes | 8.50% Senior Notes, due 2021 | Minimum              
Debt Instrument [Line Items]              
Debt instrument, redemption price, aggregate principal amount outstanding     65.00%        
Senior Notes | $125 Million 8.5% New Issuance ('Tag on') [Member]              
Debt Instrument [Line Items]              
Debt instrument, interest rate (percent)             8.50%
Debt issuance costs             $ (3,000,000)
Debt instrument             $ 125,000,000
v3.19.1
Debt Obligations - Redemption Price (Details) - Senior Notes - 8.50% Senior Notes, due 2021
12 Months Ended 24 Months Ended
Dec. 31, 2018
Dec. 14, 2018
Debt Instrument [Line Items]    
Debt instrument, redemption price, percentage   108.50%
2018    
Debt Instrument [Line Items]    
Debt instrument, redemption price, percentage 104.25%  
2019    
Debt Instrument [Line Items]    
Debt instrument, redemption price, percentage 102.125%  
2020 and thereafter    
Debt Instrument [Line Items]    
Debt instrument, redemption price, percentage 100.00%  
v3.19.1
Debt Obligations - 3.77% Senior Notes (Details)
Sep. 30, 2016
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 28, 2016
USD ($)
Debt Instrument [Line Items]        
Debt issuance costs       $ 6,000,000
Senior Notes | 3.77% Senior Notes, due 2031        
Debt Instrument [Line Items]        
Debt instrument $ 60,000,000.0      
Debt instrument, interest rate (percent) 3.77% 3.77% 3.77%  
Repayments, average quarterly principal payment $ 1,100,000      
Proceeds from debt 57,700,000      
Debt issuance costs $ 2,300,000      
Restricted cash and investments   $ 23,400,000 $ 14,900,000  
Interest coverage ratio   1.20    
v3.19.1
Debt Obligations - 3.97% Trans-Union Notes (Details) - USD ($)
May 10, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 28, 2016
Debt Instrument [Line Items]        
Debt Issuance Costs, Gross       $ 6,000,000
Senior Notes | 3.97% Trans-Union Secured Senior Notes        
Debt Instrument [Line Items]        
Debt instrument $ 35,000,000.0      
Debt instrument, interest rate (percent) 3.97% 3.97% 3.97%  
Repayments, average quarterly principal payment $ 500,000      
Proceeds from Issuance of Debt 34,600,000      
Debt Issuance Costs, Gross $ 400,000      
Restricted cash and investments   $ 6,800,000 $ 1,700,000  
v3.19.1
Debt Obligations - Carrying Values and Estimated Fair Values of Debt Instruments (Details) - Senior Notes - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Carrying Amount    
Debt Instrument [Line Items]    
Carrying value and estimated fair values of debt $ 504,777 $ 506,118
Carrying Amount | 8.50% Senior Notes    
Debt Instrument [Line Items]    
Carrying value and estimated fair values of debt 419,451 418,421
Carrying Amount | 3.77% Senior Notes    
Debt Instrument [Line Items]    
Carrying value and estimated fair values of debt 55,370 56,005
Carrying Amount | 3.97% Trans-Union Secured Senior Notes    
Debt Instrument [Line Items]    
Carrying value and estimated fair values of debt 29,956 31,692
Fair Value    
Debt Instrument [Line Items]    
Carrying value and estimated fair values of debt 479,178 521,128
Fair Value | 8.50% Senior Notes    
Debt Instrument [Line Items]    
Carrying value and estimated fair values of debt 399,789 437,062
Fair Value | 3.77% Senior Notes    
Debt Instrument [Line Items]    
Carrying value and estimated fair values of debt 51,567 53,845
Fair Value | 3.97% Trans-Union Secured Senior Notes    
Debt Instrument [Line Items]    
Carrying value and estimated fair values of debt $ 27,822 $ 30,221
v3.19.1
Convertible Preferred Units - Partners' Capital (Units Outstanding) (Details) - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Increase (Decrease) in Partners' Capital [Roll Forward]    
Partners' capital account, beginning balance $ 317,180 $ 334,090
Issuance of units   (34,475)
Paid in kind unit distributions 38 86,335
Partners' capital account, ending balance $ 324,624 $ 317,180
Series A    
Increase (Decrease) in Partners' Capital [Roll Forward]    
Partners' capital account, beginning balance (in shares) 10,719 10,107
Partners' capital account, beginning balance $ 191,798 $ 181,386
Issuance of units (in shares)   0
Issuance of units   $ 0
Partners' capital account, ending balance (in shares) 11,010 10,719
Partners' capital account, ending balance $ 195,781 $ 191,798
Series C    
Increase (Decrease) in Partners' Capital [Roll Forward]    
Partners' capital account, beginning balance (in shares) 8,965 8,792
Partners' capital account, beginning balance $ 125,382 $ 118,229
Issuance of units (in shares)   0
Issuance of units   $ 0
Partners' capital account, ending balance (in shares) 9,242 8,965
Partners' capital account, ending balance $ 128,843 $ 125,382
Series D    
Increase (Decrease) in Partners' Capital [Roll Forward]    
Partners' capital account, beginning balance (in shares) 0 2,333
Partners' capital account, beginning balance $ 0 $ 34,475
Issuance of units (in shares)   (2,333)
Issuance of units   $ (34,475)
Partners' capital account, ending balance (in shares) 0 0
Partners' capital account, ending balance $ 0 $ 0
Paid-in-kind units    
Increase (Decrease) in Partners' Capital [Roll Forward]    
Paid in kind unit distributions $ 7,444 $ 17,565
Paid-in-kind units | Series A    
Increase (Decrease) in Partners' Capital [Roll Forward]    
Paid in kind unit distributions (in shares) 291 612
Paid in kind unit distributions $ 3,983 $ 10,412
Paid-in-kind units | Series C    
Increase (Decrease) in Partners' Capital [Roll Forward]    
Paid in kind unit distributions (in shares) 277 173
Paid in kind unit distributions $ 3,461 $ 7,153
Paid-in-kind units | Series D    
Increase (Decrease) in Partners' Capital [Roll Forward]    
Paid in kind unit distributions (in shares) 0 0
Paid in kind unit distributions $ 0 $ 0
v3.19.1
Convertible Preferred Units - Series A-1 Convertible Preferred Units (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Apr. 15, 2013
USD ($)
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
USD ($)
shares
Dec. 31, 2016
USD ($)
shares
Class of Stock [Line Items]        
Issuance of Series C Units and Warrant in connection with the Emerald Transactions   $ 0 $ 0 $ 120,000
Paid in kind unit distributions   $ 38 $ 86,335  
Series A        
Class of Stock [Line Items]        
Partnership cancellation of subordinated units (percent) 90.00%      
Partners' capital account (in shares) | shares 5,142,857 11,010,000 10,719,000 10,107,000
Distribution declared per common unit (in dollars per share) | $ / shares   $ 0.4125    
Shares issued upon conversion (in shares) | shares 1 1    
Investment options, exercise price (in dollars per share) | $ / shares   $ 13.66    
Conversion ratio   1.281    
Multiplier on number of units owned at liquidation   17.50    
Accrued in-kind distributions   $ 2,800    
Series A | High Point        
Class of Stock [Line Items]        
Issuance of Series C Units and Warrant in connection with the Emerald Transactions $ 15,000      
v3.19.1
Convertible Preferred Units - Series A-2 Convertible Preferred Units (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Jul. 27, 2015
USD ($)
$ / shares
Dec. 31, 2018
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
shares
Class of Stock [Line Items]        
Issuance of units   $ 0 $ 0 $ 34,413
Series A-2        
Class of Stock [Line Items]        
Issuance of units       $ 45,000
Investment options, exercise price (in dollars per share) | $ / shares $ 17.50 $ 13.66    
Conversion ratio   1.281    
Multiplier on number of units owned at liquidation   17.50    
Accrued in-kind distributions   $ 1,200    
Call right defined acquisition, value $ 100,000      
Magnolia Infrastructure Partners, LLC | Issuance of Preferred Units | Series A-2        
Class of Stock [Line Items]        
Partners' capital account, units, sold in private placement (in shares) | shares       2,571,430
v3.19.1
Convertible Preferred Units - Series C (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Apr. 25, 2016
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
shares
Dec. 31, 2016
USD ($)
Apr. 25, 2017
USD ($)
shares
Class of Stock [Line Items]          
Issuance of warrants | $       $ 4,481  
Series C          
Class of Stock [Line Items]          
Issuance of units (in shares)     0    
Shares issued upon conversion (in shares)   1      
Investment options, exercise price (in dollars per share) | $ / shares $ 14.00 $ 13.98      
Conversion ratio   1.001      
Number of securities called by warrants (in shares)   1,291,869     416,485
Warrant, exercisable period 7 years        
Number of units in warrant calculation (in shares)         400,000
Stipulated deduction in warrant calculation | $         $ 45,000
Fair value of warrant unit (in dollars per share) | $ / shares   $ 4.41      
Issuance of warrants | $   $ 4,500      
Series C Preferred Stock          
Class of Stock [Line Items]          
Warrants and Rights Outstanding, Term   7 years      
Issuance of Preferred Units | ArcLight | Series C          
Class of Stock [Line Items]          
Issuance of units (in shares) 8,571,429        
Expected dividend rate | Series C Preferred Stock          
Class of Stock [Line Items]          
Expected dividend rate   0.18      
Price volatility | Series C Preferred Stock          
Class of Stock [Line Items]          
Expected dividend rate   0.42      
v3.19.1
Convertible Preferred Units - Series D (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Oct. 02, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Oct. 01, 2017
Oct. 31, 2016
Class of Stock [Line Items]            
Distributions   $ 80,310 $ 116,293 $ 112,136    
Series D            
Class of Stock [Line Items]            
Limited partners, units issued (in shares)           2,333,333
Shares issued (in dollars per share)           $ 15.00
Units issued, closing fee           1.50%
Limited partners, units outstanding (in shares) 0          
Series D            
Class of Stock [Line Items]            
Limited partners, units outstanding (in shares)         2,333,333  
Cash payment to repurchase convertible preferred units $ 37,000          
Distributions $ 2,500          
v3.19.1
Partners' Capital - Outstanding Units (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
General Partner      
Increase (Decrease) in Partners' Capital [Roll Forward]      
Partners' capital account, beginning balance (in shares) 965 680 536
Issuance of units (in shares) 16 285 144
Partners' capital account, ending balance (in shares) 981 965 680
Limited Partner      
Increase (Decrease) in Partners' Capital [Roll Forward]      
Partners' capital account, beginning balance (in shares) 52,711 51,351 50,504
Conversion of Series B Units (in shares)     1,350
Issuance of units (in shares) 811 929 248
Return of escrow units (in shares)     (1,034)
Partners' capital account, ending balance (in shares) 54,017 52,711 51,351
Limited Partner | Long Term Incentive Plan      
Increase (Decrease) in Partners' Capital [Roll Forward]      
Issuance of units (in shares) 495 431 283
Series B      
Increase (Decrease) in Partners' Capital [Roll Forward]      
Partners' capital account, beginning balance (in shares) 0 0 1,350
Conversion of Series B Units (in shares)     1,350
Partners' capital account, ending balance (in shares) 0 0 0
v3.19.1
Partners' Capital - Textual (Details)
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
General partner interest 1.30%
Limited partner interest 98.70%
v3.19.1
Partners' Capital - Series B Units (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2014
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Feb. 01, 2016
Class of Stock [Line Items]          
Issuance of units   $ 0 $ 0 $ 34,413  
Series B          
Class of Stock [Line Items]          
Limited partners, units issued (in shares) 1,168,225        
Series B          
Class of Stock [Line Items]          
Issuance of units $ 30,000        
Shares issued upon conversion (in shares)         1
v3.19.1
Partners' Capital - Equity Offerings (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Oct. 31, 2015
Equity [Abstract]        
Aggregate offering price       $ 100,000,000
Partners' capital account, units, sold in public offering (in shares)   248,561    
Proceeds from issuance of common units, net of offering costs   $ 2,900,000    
Limited partners' offering costs   300,000    
Authorized amount remaining   96,800,000    
Issuance of common units, net of offering costs $ 4,916,000 $ 12,532,000 $ 2,697,000  
v3.19.1
Partners' Capital - General Partner Units (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Mar. 08, 2017
Class of Stock [Line Items]        
General partners' capital account, period distribution amount $ 0.1 $ 4.0 $ 2.0  
General partners' interest units issued (in shares) 981,000 965,000    
General Partner        
Class of Stock [Line Items]        
General partners' interest units issued (in shares) 16,326 284,886 143,900 20,200,000
v3.19.1
Partners' Capital - Distributions (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Nov. 14, 2018
Aug. 14, 2018
May 15, 2018
Feb. 14, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Class of Stock [Line Items]              
Total Cash Distributions $ 5,538 $ 5,535 $ 22,140 $ 22,035      
Cash Distributions Per Common Unit (in usd per share) $ 0.1031 $ 0.1031 $ 0.4125 $ 0.4125      
Paid in kind unit distributions         $ 38 $ 86,335  
Limited Partner              
Class of Stock [Line Items]              
Total Cash Distributions $ 5,464 $ 5,463 $ 21,853 $ 21,745      
General Partner              
Class of Stock [Line Items]              
Total Cash Distributions $ 74 $ 72 $ 287 $ 290      
Paid in kind unit distributions         38 86,335  
Cash paid              
Class of Stock [Line Items]              
Paid in kind unit distributions         80,310 116,293 $ 112,136
Cash paid | Series A              
Class of Stock [Line Items]              
Paid in kind unit distributions         13,625 8,354 4,935
Cash paid | Series C              
Class of Stock [Line Items]              
Paid in kind unit distributions         11,437 12,186 3,089
Cash paid | Series D              
Class of Stock [Line Items]              
Paid in kind unit distributions         0 2,887 0
Cash paid | Limited Partner              
Class of Stock [Line Items]              
Paid in kind unit distributions         54,525 89,378 101,561
Cash paid | General Partner              
Class of Stock [Line Items]              
Paid in kind unit distributions         723 3,488 2,551
Accrued (1)              
Class of Stock [Line Items]              
Paid in kind unit distributions         7,444 8,076 9,850
Accrued (1) | Series A              
Class of Stock [Line Items]              
Paid in kind unit distributions         3,983 3,767 5,260
Accrued (1) | Series C              
Class of Stock [Line Items]              
Paid in kind unit distributions         3,461 4,309 3,627
Paid-in-kind              
Class of Stock [Line Items]              
Paid in kind unit distributions         8,076 12,222 16,093
Paid-in-kind | Series A              
Class of Stock [Line Items]              
Paid in kind unit distributions         3,767 9,378 13,321
Paid-in-kind | Series C              
Class of Stock [Line Items]              
Paid in kind unit distributions         4,309 2,844 2,772
Additional Blackwater acquisition consideration              
Class of Stock [Line Items]              
Paid in kind unit distributions         0 0 5,000
Additional Blackwater acquisition consideration | General Partner              
Class of Stock [Line Items]              
Paid in kind unit distributions         0 0 5,000
American Midstream Partners L. P. | Accrued (1) | Series D              
Class of Stock [Line Items]              
Paid in kind unit distributions         $ 0 $ 0 $ 963
v3.19.1
Partners' Capital - Distributions Textual (Details)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Sep. 30, 2018
$ / shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Class of Stock [Line Items]        
Fair Value input, distribution growth rate       1.00%
Minimum        
Class of Stock [Line Items]        
Fair value input, option value (in dollars per share)       $ 0.02
Maximum        
Class of Stock [Line Items]        
Fair value input, option value (in dollars per share)       $ 3.86
Series A        
Class of Stock [Line Items]        
Accrued in-kind distributions | $       $ 2.8
Distribution declared per common unit (in dollars per share)       $ 0.4125
Discount rate | Minimum        
Class of Stock [Line Items]        
Measurement input on paid-in-kind preferred units       0.0557
Discount rate | Maximum        
Class of Stock [Line Items]        
Measurement input on paid-in-kind preferred units       0.100
Limited Partner        
Class of Stock [Line Items]        
Actual consolidated total leverage ratio       5.00
Minimum distributions on an annualized basis (in usd per share)       $ 0.4125
Accrued Arrearages on IPO Shares | $       $ 2.3
Distribution made to limited partner (in dollars per share)       $ 1.65
Limited Partner | Cash paid        
Class of Stock [Line Items]        
Distribution Made to Limited Partner, Cash Distributions Declared | $ $ 21.7 $ 12.9    
General Partner | Cash paid        
Class of Stock [Line Items]        
Distribution Made to Limited Partner, Cash Distributions Declared | $ $ 0.3 $ 0.2    
Series A        
Class of Stock [Line Items]        
Minimum distributions on an annualized basis (in usd per share)     $ 0.4125  
IPO        
Class of Stock [Line Items]        
IPO common units outstanding | shares       3.8
v3.19.1
Net Loss per Limited Partner Unit (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Loss from continuing operations $ (14,719) $ 38,183 $ (17,274) $ (13,838) $ (220,335) $ 11,806 $ (25,901) $ (28,171) $ (7,648) $ (262,601) $ (43,829)
Net income attributable to noncontrolling interests $ (33) $ (25) $ (13) $ (45) $ (1,087) $ (621) $ (1,462) $ (1,303) (116) (4,473) (2,766)
Loss attributable to the Partnership                 (7,764) (267,074) (46,595)
Distributions                 38 86,335  
General partner's share in undistributed loss                 963 5,108 1,691
Loss attributable to Limited Partners                 (39,741) (296,893) (77,042)
Income (loss) from discontinued operations, including gain on sale                 0 44,095 (4,715)
Net loss attributable to Limited Partners                 $ (39,741) $ (252,798) $ (81,757)
Weighted average number of common units used in computation of Limited Partners' net loss per common unit - basic and diluted (in shares)                 53,136 52,043 51,176
Loss from continuing operations, basic and diluted (in dollars per share) $ (0.41) $ 0.56 $ (0.48) $ (0.42) $ (4.32) $ 0.05 $ (0.69) $ (0.74) $ (0.75) $ (5.70) $ (1.51)
Loss from discontinued operations, basic and diluted (in dollars per share)         $ 0.03 $ 0.86 $ (0.03) $ (0.01) 0.00 0.85 (0.09)
Limited partners’ net income (loss) per unit (basic and diluted) (in dollars per share)                 $ (0.75) $ (4.85) $ (1.60)
Antidilutive common unit equivalents excluded from calculation of diluted limited partners' net income per common unit (shares)                 24,100 23,300 23,800
General Partner                      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Distributions                 $ 38 $ 86,335  
General Partner | Dividend Declared                      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Distributions                 (434) (1,053) $ (2,550)
Series A                      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Distributions on Units                 (17,608) (16,237) (19,138)
Series C                      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Distributions on Units                 (14,898) (15,712) (9,487)
Series D                      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Distributions on Units                 $ 0 $ (1,925) $ (963)
v3.19.1
Incentive Compensation (Textual) (Details) - USD ($)
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 07, 2017
Apr. 30, 2017
Sep. 30, 2016
Aug. 31, 2016
Dec. 31, 2015
Sep. 30, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Sep. 02, 2018
Nov. 30, 2017
Nov. 30, 2015
Nov. 19, 2015
Subsequent Event [Line Items]                          
Long-term incentive plan, increase in available awards (in shares)             151,845 151,845         6,000,000
Long term incentive plan available for future grant (in shares)             3,958,593 4,134,412 5,017,528        
Grants issued under long term incentive plan             25.00%            
Granted (in shares)             0 15,000          
Partners' Capital Account, Sale of Units, Price per Unit $ 16.45                        
Granted (in dollars per share)             $ 0.00 $ 14.85          
Options, outstanding, weighted average exercise price (in dollars per share)             $ 8.40 $ 8.50 $ 9.03        
Phantom Units                          
Subsequent Event [Line Items]                          
Equity compensation expense             $ 3,400,000 $ 7,900,000 $ 3,600,000        
Total fair value of vested units             3,500,000 9,800,000 2,400,000        
Compensation cost not yet recognized             $ 6,900,000            
Weighted average period cost recognized             3 years 3 months 18 days            
Performance and Service Condition Awards                          
Subsequent Event [Line Items]                          
Equity compensation expense             $ 100,000 200,000 $ 900,000        
Aggregate intrinsic value, nonvested               $ 1,500,000          
Options                          
Subsequent Event [Line Items]                          
Granted (in shares)       30,000 200,000                
Granted (in dollars per share)         $ 7.50                
Options, outstanding, weighted average exercise price (in dollars per share)       $ 12.00                  
Performance Shares                          
Subsequent Event [Line Items]                          
Long term incentive plan available for future grant (in shares)                     524,000    
Outstanding shares (in shares)             400,000 524,000 0        
Equity compensation expense             $ 900,000 $ 100,000          
Compensation cost not yet recognized             $ 3,800,000 $ 6,200,000          
Operating Expense | Performance and Service Condition Awards                          
Subsequent Event [Line Items]                          
Equity compensation expense           $ 1,000,000              
Aggregate intrinsic value, nonvested                       $ 2,000,000  
September 2016 | Options                          
Subsequent Event [Line Items]                          
Granted (in shares)   15,000 45,000                    
Award vesting period             4 years            
Options, outstanding, weighted average exercise price (in dollars per share)   $ 14.85 $ 13.88     $ 13.88              
Award vesting rights   25.00% 25.00%                    
American Midstream Partners, LP Amended and Restated 2014 Long Term Incentive Plan                          
Subsequent Event [Line Items]                          
Outstanding shares (in shares)             1,215,322            
Aggregate intrinsic value, nonvested             $ 3,682,000            
American Midstream Partners, LP Amended and Restated 2014 Long Term Incentive Plan | Phantom Units                          
Subsequent Event [Line Items]                          
Outstanding shares (in shares)               1,407,978 1,558,835        
Aggregate intrinsic value, nonvested               $ 18,797,000          
JPE 2014 Long-Term Incentive Plan (“JPE LTIP”) | Phantom Units                          
Subsequent Event [Line Items]                          
Long term incentive plan available for future grant (in shares)             3,642,700            
Award vesting period             3 years            
Outstanding shares (in shares)                 312,992        
Equity compensation expense               $ 1,700,000          
JPE 2014 Long-Term Incentive Plan (“JPE LTIP”) | JPE Modified Awards                          
Subsequent Event [Line Items]                          
Equity compensation expense             $ 1,500,000            
Cash Retention Plan [Member] | Restricted Stock Units (RSUs) [Member]                          
Subsequent Event [Line Items]                          
Equity compensation expense             3,600,000            
Cash award per unit (in usd per share)                   $ 6.00      
Remaining unamortized expense             $ 5,100,000            
v3.19.1
Incentive Compensation (Unit-based Awards) (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract]        
Forfeited (in dollars per share) $ 0.00 $ 2.74    
Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]        
Outstanding shares (in shares) 524,000 0    
Granted (in shares)   524,000    
Forfeited (in shares) (124,000)      
Outstanding shares (in shares) 400,000 524,000 0  
JPE 2014 Long-Term Incentive Plan (“JPE LTIP”) | Phantom Units        
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]        
Outstanding shares (in shares)   312,992    
Outstanding shares (in shares)     312,992  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract]        
Granted (in dollars per share)     $ 15.73  
Long Term Incentive Plan | Phantom Units        
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]        
Outstanding shares (in shares)   1,245,843 569,759  
Granted (in shares)     1,374,226  
Forfeited (in shares)     (411,794)  
Vested (in shares)     (286,348)  
Outstanding shares (in shares)     1,245,843  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract]        
Outstanding shares (in dollars per share)   $ 4.72 $ 13.15  
Granted (in dollars per share)     2.14  
Forfeited (in dollars per share)     2.60  
Vested (in dollars per share)     12.18  
Outstanding shares (in dollars per share)     $ 4.72  
Aggregate intrinsic value, nonvested     $ 22,674 $ 4,609
American Midstream Partners, LP Amended and Restated 2014 Long Term Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]        
Outstanding shares (in shares) 1,215,322      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract]        
Outstanding shares (in dollars per share) $ 7.46      
Aggregate intrinsic value, nonvested $ 3,682      
American Midstream Partners, LP Amended and Restated 2014 Long Term Incentive Plan | Phantom Units        
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]        
Outstanding shares (in shares) 1,407,978 1,558,835    
Granted (in shares) 825,973 586,173    
Forfeited (in shares) (461,338) (136,053)    
Vested (in shares) (557,291) (600,977)    
Outstanding shares (in shares)   1,407,978 1,558,835  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract]        
Outstanding shares (in dollars per share) $ 6.29 $ 6.98    
Granted (in dollars per share) 8.54 10.66    
Forfeited (in dollars per share) 7.24 10.52    
Vested (in dollars per share) $ 6.30 11.38    
Outstanding shares (in dollars per share)   $ 6.29 $ 6.98  
Aggregate intrinsic value, nonvested   $ 18,797    
v3.19.1
Incentive Compensation - Assumptions (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Options | September 2016    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Weighted average common unit price volatility 65.00% 61.10%
Expected distribution yield 11.10% 12.60%
Weighted average expected term (in years) 3 years 9 months 14 days 4 years 1 month 6 days
Weighted average risk-free rate 1.63% 1.10%
Performance Shares    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Weighted average common unit price volatility 60.00%  
Expected distribution yield 13.15%  
Minimum | Performance Shares    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Weighted average expected term (in years) 1 year  
Weighted average risk-free rate 1.60%  
Maximum | Performance Shares    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Weighted average expected term (in years) 5 years  
Weighted average risk-free rate 2.10%  
v3.19.1
Incentive Compensation - Option Grant Awards (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]      
Outstanding beginning balance (in shares) 245,000 275,000  
Granted (in shares) 0 15,000  
Vested (in shares) (3,750) 0  
Forfeited (in shares) 0 (45,000)  
Outstanding ending balance (in shares) 241,250.00 245,000 275,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Outstanding beginning balance (in dollars per share) $ 8.50 $ 9.03  
Granted (in dollars per share) 0.00 14.85  
Vested (in dollars per share) 14.85 0.00  
Forfeited (in dollars per share) 0.00 13.88  
Outstanding ending balance (in dollars per share) 8.40 8.50 $ 9.03
Weighted-Average Grant Date Fair Value per Unit (in dollars per share) 0.76 0.80 $ 0.96
Weighted-Average Grant Date Fair Value per Unit (in dollars per share) 0.00 3.69  
Weighted-Average Grant Date Fair Value per Unit (in dollars per share) 3.69 0.00  
Weighted-Average Grant Date Fair Value per Unit (in dollars per share) $ 0.00 $ 2.74  
Aggregate Intrinsic Value $ 0.00 $ 1,211,000 $ 2,522,000
Weighted Average Remaining Contractual Life 2 months 12 days 3 years 1 month 6 days 5 years
v3.19.1
Incentive Compensation - Defined Contribution Plan (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]      
Defined Contribution Plan, Cost $ 2,377,000 $ 2,047,000 $ 1,964,000
Employer matching contribution, percentage of employee's contribution matched (percent) 100.00%    
Employer matching contribution, limit on employee's eligible compensation (percent) 6.00%    
Employer matching contribution annual limit $ 16,200    
v3.19.1
Income Tax (Expense) Benefit (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]      
Current income tax expense $ 39,697 $ 1,317 $ 523
Deferred income tax expense (benefit) (6,702) (82) 2,057
Income tax expense $ 32,995 $ 1,235 $ 2,580
Effective income tax rate 130.20% (0.50%) (6.30%)
v3.19.1
Income Taxes - Narrative (Details)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]      
US Federal statutory tax rate 21.00% 34.00% 34.00%
v3.19.1
Income Tax Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]      
Gain (loss) from continuing operations before income taxes $ 25,347 $ (261,366) $ (41,249)
US Federal statutory tax rate 21.00% 34.00% 34.00%
Federal income tax expense (benefit) at statutory rate $ 5,323 $ (88,864) $ (14,025)
Partnership loss not subject to income tax benefit 15,038 89,711 15,800
State and local tax expense 9,299 2,664 800
Goodwill 3,415 0 0
Rate change 0 (2,369) 0
Other (80) 93 5
Income tax expense $ 32,995 $ 1,235 $ 2,580
v3.19.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Deferred tax assets:    
Net operating loss carryforwards $ 0 $ 6,646
Other 0 86
Total deferred tax assets 0 6,732
Deferred tax liabilities:    
Property, plant and equipment 1,421 14,855
Total deferred tax liabilities 1,421 14,855
Deferred income tax liability, net $ (1,421) $ (8,123)
v3.19.1
Commitments and Contingencies (Details Textual) - USD ($)
$ in Millions
12 Months Ended
Oct. 23, 2018
Sep. 25, 2018
Apr. 12, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Loss Contingencies [Line Items]            
Business exit costs           $ 9.1
Rental expenses       $ 11.8 $ 12.6 $ 15.9
the Petition            
Loss Contingencies [Line Items]            
Damages sought   $ 4.7        
Payments for legal settlements $ 2.0          
Rainbow Energy Marketing, Inc. v. American Midstream (Alabama Intrastate), LLC            
Loss Contingencies [Line Items]            
Damages sought     $ 6.6      
American Midstream (Alabama Intrastate), LLC | Rainbow Energy Marketing, Inc. v. American Midstream (Alabama Intrastate), LLC            
Loss Contingencies [Line Items]            
Counterclaim filed     $ 1.3      
v3.19.1
Commitments and Contingencies (Contractual Obligations) (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Mar. 31, 2018
Dec. 31, 2017
Dec. 28, 2017
Dec. 28, 2016
Sep. 30, 2016
May 10, 2016
Future Non Cancelable Commitment [Line Items]              
2019 $ 577,386,000            
2020 55,646,000            
2021 479,148,000            
2022 14,189,000            
2023 13,189,000            
Thereafter 263,761,000            
Total 1,403,319,000            
3.77% Senior Notes, due 2031              
Future Non Cancelable Commitment [Line Items]              
2019 2,233,000            
2020 2,299,000            
2021 4,430,000            
2022 4,579,000            
2023 4,733,000            
Thereafter 39,242,000            
Total 57,516,000            
8.50% Senior Notes, due 2021              
Future Non Cancelable Commitment [Line Items]              
2019 0            
2020 0            
2021 425,000,000            
2022 0            
2023 0            
Thereafter 0            
Total 425,000,000            
3.97% Trans-Union Secured Senior Notes              
Future Non Cancelable Commitment [Line Items]              
2019 1,805,000            
2020 1,852,000            
2021 1,900,000            
2022 1,952,000            
2023 2,005,000            
Thereafter 20,756,000            
Total 30,270,000            
Revolving Credit Agreements              
Future Non Cancelable Commitment [Line Items]              
2019 514,800,000            
2020 0            
2021 0            
2022 0            
2023 0            
Thereafter 0            
Total 514,800,000            
Interest outstanding $ 514,800,000            
Senior Notes | 3.77% Senior Notes, due 2031              
Future Non Cancelable Commitment [Line Items]              
Debt instrument, interest rate (percent) 3.77%   3.77%     3.77%  
Debt instrument           $ 60,000,000.0  
Senior Notes | 8.50% Senior Notes, due 2021              
Future Non Cancelable Commitment [Line Items]              
Debt instrument, interest rate (percent) 8.50% 8.50% 8.50% 8.50% 8.50%    
Debt instrument       $ 125,000,000 $ 300,000,000    
Senior Notes | 3.97% Trans-Union Secured Senior Notes              
Future Non Cancelable Commitment [Line Items]              
Debt instrument, interest rate (percent) 3.97%   3.97%       3.97%
Debt instrument             $ 35,000,000.0
Interest Payments on Debt              
Future Non Cancelable Commitment [Line Items]              
2019 $ 43,746,000            
2020 43,600,000            
2021 41,703,000            
2022 2,718,000            
2023 2,465,000            
Thereafter 9,771,000            
Total 144,003,000            
Operating Lease Obligation [Member]              
Future Non Cancelable Commitment [Line Items]              
2019 8,161,000            
2020 5,067,000            
2021 3,429,000            
2022 2,536,000            
2023 1,545,000            
Thereafter 14,200,000            
Total 34,938,000            
Sublease income 4,600,000            
Assets Retirement Obligation              
Future Non Cancelable Commitment [Line Items]              
2019 3,846,000            
2020 0            
2021 0            
2022 0            
2023 0            
Thereafter 67,451,000            
Total 71,297,000            
Other Service Contract Obligation [Member]              
Future Non Cancelable Commitment [Line Items]              
2019 2,795,000            
2020 2,828,000            
2021 2,686,000            
2022 2,404,000            
2023 2,441,000            
Thereafter 112,341,000            
Total $ 125,495,000            
v3.19.1
Related-Party Transactions (Details Textual)
1 Months Ended 2 Months Ended 3 Months Ended 7 Months Ended 12 Months Ended 48 Months Ended
Dec. 10, 2018
USD ($)
shares
Mar. 11, 2018
USD ($)
Nov. 03, 2017
USD ($)
Sep. 30, 2016
USD ($)
Oct. 31, 2017
USD ($)
Mar. 31, 2018
USD ($)
Mar. 31, 2017
USD ($)
Aug. 07, 2017
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2017
USD ($)
Jan. 02, 2019
$ / shares
Sep. 27, 2018
$ / shares
Sep. 30, 2017
quarter
Oct. 31, 2016
Feb. 01, 2016
USD ($)
Dec. 31, 2013
USD ($)
Related Party Transaction [Line Items]                                    
Revenue from related parties                 $ 2,600,000 $ 2,500,000                
Direct operating expenses                 87,677,000 82,256,000 $ 71,544,000              
Corporate expenses                 89,706,000 112,058,000 89,438,000              
Unit holder contributions                   46,317,000 1,998,000              
Corporate overhead support from General Partner                 0 4,000,000 7,500,000              
Due from related parties                 16,000 4,362,000   $ 4,362,000            
J P Energy Development L P                                    
Related Party Transaction [Line Items]                                    
Related party transaction, purchases from related party                     400,000              
Republic Midstream, LLC (“Republic”)                                    
Related Party Transaction [Line Items]                                    
Monthly fee       $ 40,000           100,000                
Yearly fee                     700,000              
Revenue from related parties                   1,000,000 3,200,000              
Due from Related Parties                 0 800,000   800,000            
Fees incurred                     75,000              
Truman Arnold Companies (TAC)                                    
Related Party Transaction [Line Items]                                    
Revenue from related parties                     200,000              
Related party transaction, purchases from related party                     1,000,000              
Other current assets                                    
Related Party Transaction [Line Items]                                    
Due from related parties                 100,000 900,000   900,000            
JPE Energy Partners                                    
Related Party Transaction [Line Items]                                    
Unit holder contributions                     2,400,000              
JPE Energy Partners | General Partner                                    
Related Party Transaction [Line Items]                                    
Revenue from related parties                     7,500,000              
Trans-Union Pipeline, L.P. (“Trans-Union”)                                    
Related Party Transaction [Line Items]                                    
Acquired interest (percent)     100.00%                              
Consideration transferred     $ 49,400,000                              
Delta House OGL                                    
Related Party Transaction [Line Items]                                    
Revenue from related parties                 800,000 400,000 0              
Due from related parties                 0 300,000   300,000            
JPE Energy Partners | J P Energy Development L P                                    
Related Party Transaction [Line Items]                                    
Sale price of business unit                                 $ 9,700,000  
General Partner                                    
Related Party Transaction [Line Items]                                    
Corporate expenses                   17,600,000                
Unit holder contributions             $ 3,900,000     46,300,000                
Affiliated Entity                                    
Related Party Transaction [Line Items]                                    
Reimbursements received under reimbursement arrangement                   9,600,000                
Affiliated Entity | ArcLight                                    
Related Party Transaction [Line Items]                                    
Range of outcomes                                   $ 5,000,000
Common units issued upon satisfaction of earn-out obligation (in shares) | shares 810,517                                  
Cash payment made upon satisfaction of earn-out obligation $ 100,000                                  
Affiliated Entity | CIMA Energy Ltd                                    
Related Party Transaction [Line Items]                                    
Revenue from related parties                 2,400,000 8,000,000 3,600,000              
Due from Related Parties                 100,000 100,000   100,000            
Related party transaction, purchases from related party                 3,700,000 5,300,000 4,300,000              
Due to Related Parties                 36,065 0   0            
Affiliated Entity | Consolidated Asset Management Services, LLC (CAMS)                                    
Related Party Transaction [Line Items]                                    
Related party transaction, purchases from related party                 600,000 400,000 300,000              
Sublease Income                 100,000 100,000 100,000              
Affiliated Entity | American Panther                                    
Related Party Transaction [Line Items]                                    
Direct operating expenses               $ 900,000   800,000                
Corporate expenses                   400,000                
Affiliated Entity | American Panther                                    
Related Party Transaction [Line Items]                                    
Noncontrolling interest, ownership percentage by parent (percent)                             60.00%      
Affiliated Entity | American Panther | Panther Asset Management LLC (Panther)                                    
Related Party Transaction [Line Items]                                    
Noncontrolling interest, ownership percentage by noncontrolling interest (percent)                             40.00%      
AMID Merger GP II, LLC                                    
Related Party Transaction [Line Items]                                    
Due from Related Parties                 $ 0 $ 2,500,000   $ 2,500,000            
Related party transaction, purchases from related party         $ 2,500,000                          
Magnolia Infrastructure Partners, LLC                                    
Related Party Transaction [Line Items]                                    
Exchanges ratio per common unit (in usd per share) | $ / shares                           $ 6.10        
Director                                    
Related Party Transaction [Line Items]                                    
Equity interest in JPE (percent)                               5.00%    
General Partner | J P Energy Development L P                                    
Related Party Transaction [Line Items]                                    
Corporate expenses                     9,000,000              
General Partner | JPE Energy Partners                                    
Related Party Transaction [Line Items]                                    
Corporate expenses                     $ 9,000,000              
Consolidated Asset Management Services, LLC (CAMS) | Director                                    
Related Party Transaction [Line Items]                                    
Percentage ownership, in excess of (percent)                 10.00%                  
Destin                                    
Related Party Transaction [Line Items]                                    
Percentage ownership, in excess of (percent)                 66.70% 66.70% 49.70% 66.70%            
Subsequent Event | Magnolia Infrastructure Partners, LLC                                    
Related Party Transaction [Line Items]                                    
Exchanges ratio per common unit (in usd per share) | $ / shares                         $ 4.50          
Corporate Overhead Support                                    
Related Party Transaction [Line Items]                                    
Unit holder contributions   $ 21,900,000             $ 31,786,000 $ 46,300,000                
Corporate Overhead Support | General Partner | Accrued Expenses and Other Current Liabilities                                    
Related Party Transaction [Line Items]                                    
Due to Related Parties                 $ 10,100,000 6,500,000   $ 6,500,000            
JPE Financial Support | General Partner                                    
Related Party Transaction [Line Items]                                    
Unit holder contributions           $ 9,800,000       15,200,000                
Maximum quarterly financial support             $ 25,000,000                      
Number of consecutive quarters to provide financial support | quarter                             8      
Corporate overhead support from General Partner                       $ 25,000,000            
JPE Financial Support | Affiliated Entity                                    
Related Party Transaction [Line Items]                                    
Reimbursements received under reimbursement arrangement                   $ 9,600,000                
v3.19.1
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Class of Stock [Line Items]      
Cash paid for interest, net of capitalized interest $ 79,767 $ 65,038 $ 22,303
Cash paid for income taxes 14,475 1,041 530
Increase (decrease) in accrued property, plant and equipment purchases (385) (3,553) 8,533
Assets acquired under capital lease 0 0 139
Accrued contributions to unconsolidated affiliates (89) 0 0
Excess of carrying value of interest in Destin above consideration paid 0 278 0
Acquisitions partially funded by the issuance of common units 0 12,532 0
Issuance of common units in connection with Blackwater Transactions 4,916 0 0
Issuance of Series C Units and Warrant in connection with the Emerald Transactions 0 0 120,000
Debt assumed in connection with the Trans-Union acquisition 0 32,453 0
Accrued distributions 0 0 7,103
Paid in kind unit distributions 38 86,335  
Cancellation of escrow units     6,817
Accrued distributions to NCI holders 0 (1,342) 0
Costar Midstream, L.L.C.      
Class of Stock [Line Items]      
Accrued distributions 0 0 5,000
Cancellation of escrow units 0 0 6,817
Paid-in-kind      
Class of Stock [Line Items]      
Paid in kind unit distributions 8,076 12,222 16,093
Paid-in-kind | Series C Preferred Stock      
Class of Stock [Line Items]      
Accrued distributions 7,444 17,565 14,446
Limited Partner      
Class of Stock [Line Items]      
Accrued contributions to unconsolidated affiliates $ 0 $ (4,000) (7,500)
Cancellation of escrow units     $ 6,817
v3.19.1
Reportable Segments Narrative (Details)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Mar. 22, 2019
segments
Sep. 30, 2017
USD ($)
Dec. 31, 2018
USD ($)
segments
Dec. 31, 2017
USD ($)
Revenue, Major Customer        
Number of reportable segments | segments     5  
Capital expenditures | $     $ 96,622 $ 113,989
Propane Business        
Revenue, Major Customer        
Capital expenditures | $   $ 3,100    
After disposition of Refined Products and Marine Products and elimination of Terminally Segment        
Revenue, Major Customer        
Number of reportable segments | segments 4      
v3.19.1
Reportable Segments (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment information                          
Revenues                   $ 803,318,000 $ 651,554,000 $ 590,643,000  
Loss on commodity derivatives, net                   2,036,000 (119,000) (1,617,000)  
Total revenue $ 176,962,000 $ 202,346,000 $ 220,217,000 $ 205,829,000 $ 163,037,000 $ 162,290,000 $ 162,030,000 $ 164,078,000   805,354,000 651,435,000 589,026,000  
Cost of sales                   592,040,000 457,371,000 393,351,000  
Direct operating expenses                   87,677,000 82,256,000 71,544,000  
Corporate expenses                   89,706,000 112,058,000 89,438,000  
Termination fee                   17,000,000 0 0  
Depreciation, amortization and accretion                   87,171,000 113,271,000 107,029,000  
Depreciation, amortization and accretion expense                   87,171,000 103,448,000 90,882,000  
(Gain) loss on sale of assets, net                   (95,118,000) (4,063,000) 688,000  
Impairment of long-lived assets and intangible assets                   1,610,000 116,609,000 697,000 $ 697,000
Loss on impairment of goodwill         78,000,000         0 77,961,000 2,654,000  
Total operating expenses                   780,086,000 945,640,000 649,254,000  
Operating income (loss) (21,878,000) 67,164,000 (7,641,000) (12,377,000) (223,558,000) (20,616,000) (25,574,000) (24,457,000)   25,268,000 (294,205,000) (60,228,000)  
Interest expense                   (82,410,000) (66,465,000) (21,433,000)  
Other income, net                   560,000 36,254,000 254,000  
Earnings in unconsolidated affiliates                   81,929,000 63,050,000 40,158,000  
Income (loss) from continuing operations before income taxes                   25,347,000 (261,366,000) (41,249,000)  
Income tax expense                   (32,995,000) (1,235,000) (2,580,000)  
Loss from continuing operations (14,719,000) 38,183,000 (17,274,000) (13,838,000) (220,335,000) 11,806,000 (25,901,000) (28,171,000)   (7,648,000) (262,601,000) (43,829,000)  
Income (loss) from discontinued operations, including gain on sale         1,910,000 44,696,000 (1,801,000) (710,000)   0 44,095,000 (4,715,000)  
Net income (loss)                   (7,648,000) (218,506,000) (48,544,000)  
Net income attributable to noncontrolling interests (33,000) (25,000) (13,000) (45,000) (1,087,000) (621,000) (1,462,000) (1,303,000)   (116,000) (4,473,000) (2,766,000)  
Net loss attributable to the Partnership $ (14,752,000) $ 38,158,000 $ (17,287,000) $ (13,883,000) $ (219,512,000) $ 55,881,000 $ (29,164,000) $ (30,184,000)   (7,764,000) (222,979,000) (51,310,000)  
Gas Gathering and Processing Services                          
Segment information                          
Loss on commodity derivatives, net                   311,000      
Total revenue                   175,908,000      
Liquid Pipelines and Services                          
Segment information                          
Loss on commodity derivatives, net                   1,725,000      
Total revenue                   452,240,000      
Loss on impairment of goodwill                 $ 2,700,000 0 77,961,000    
Natural Gas Transportation Services                          
Segment information                          
Loss on commodity derivatives, net                   0      
Total revenue                   59,663,000      
Offshore Pipelines and Services                          
Segment information                          
Loss on commodity derivatives, net                   0      
Total revenue                   72,180,000      
Loss on impairment of goodwill                   0 0    
Terminalling Services                          
Segment information                          
Loss on commodity derivatives, net                   0      
Total revenue                   45,363,000      
Loss on impairment of goodwill                   0 0    
Segment assets: | Gas Gathering and Processing Services                          
Segment information                          
Revenues                   175,597,000 150,252,000 120,920,000  
Loss on commodity derivatives, net                   311,000 (340,000) (833,000)  
Total revenue                   175,908,000 149,912,000 120,087,000  
Cost of sales                   124,379,000 101,981,000 68,955,000  
Direct operating expenses                    
Earnings in unconsolidated affiliates                   0 0 0  
Gross margin                   51,888,000 48,053,000 50,040,000  
Segment assets: | Liquid Pipelines and Services                          
Segment information                          
Revenues                   450,515,000 343,724,000 331,287,000  
Loss on commodity derivatives, net                   1,725,000 221,000 (341,000)  
Total revenue                   452,240,000 343,945,000 330,946,000  
Cost of sales                   423,519,000 309,166,000 288,735,000  
Direct operating expenses                    
Earnings in unconsolidated affiliates                   11,954,000 5,226,000 2,070,000  
Gross margin                   40,542,000 39,870,000 44,161,000  
Segment assets: | Natural Gas Transportation Services                          
Segment information                          
Revenues                   59,663,000 47,899,000 40,108,000  
Loss on commodity derivatives, net                   0 0 0  
Total revenue                   59,663,000 47,899,000 40,108,000  
Cost of sales                   23,207,000 24,516,000 21,288,000  
Direct operating expenses                    
Earnings in unconsolidated affiliates                   0 0 0  
Gross margin                   36,130,000 23,005,000 18,616,000  
Segment assets: | Offshore Pipelines and Services                          
Segment information                          
Revenues                   72,180,000 55,138,000 47,314,000  
Loss on commodity derivatives, net                   0 0 (7,000)  
Total revenue                   72,180,000 55,138,000 47,307,000  
Cost of sales                   8,050,000 8,993,000 3,049,000  
Direct operating expenses                    
Earnings in unconsolidated affiliates                   69,975,000 57,824,000 38,088,000  
Gross margin                   134,106,000 103,970,000 82,346,000  
Segment assets: | Terminalling Services                          
Segment information                          
Revenues                   45,363,000 54,541,000 51,014,000  
Loss on commodity derivatives, net                   0 0 (436,000)  
Total revenue                   45,363,000 54,541,000 50,578,000  
Cost of sales                   12,885,000 12,715,000 11,324,000  
Direct operating expenses                   9,664,000 11,871,000 8,205,000  
Earnings in unconsolidated affiliates                   0 0 0  
Gross margin                   $ 22,814,000 $ 29,956,000 $ 31,050,000  
v3.19.1
Reportable Segments Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]        
Total assets $ 1,687,696 $ 1,923,466    
Investment in unconsolidated affiliates 337,796 348,434 $ 291,987 $ 63,704
Liquid Pipelines and Services        
Segment Reporting Information [Line Items]        
Investment in unconsolidated affiliates 69,523 38,957    
Offshore Pipelines and Services        
Segment Reporting Information [Line Items]        
Investment in unconsolidated affiliates 268,273 309,477    
Segment assets: | Gas Gathering and Processing Services        
Segment Reporting Information [Line Items]        
Total assets 400,052 407,814    
Segment assets: | Liquid Pipelines and Services        
Segment Reporting Information [Line Items]        
Total assets 426,831 421,735    
Segment assets: | Natural Gas Transportation Services        
Segment Reporting Information [Line Items]        
Total assets 271,890 268,122    
Segment assets: | Offshore Pipelines and Services        
Segment Reporting Information [Line Items]        
Total assets 531,400 547,283    
Segment assets: | Terminalling Services        
Segment Reporting Information [Line Items]        
Total assets 0 235,081    
Segment assets: | Other (1)        
Segment Reporting Information [Line Items]        
Total assets $ 57,523 $ 43,431    
v3.19.1
Reportable Segments Capital Expenditures (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]    
Capital expenditures $ 96,622 $ 113,989
Gas Gathering and Processing Services    
Segment Reporting Information [Line Items]    
Capital expenditures 35,131 15,689
Liquid Pipelines and Services    
Segment Reporting Information [Line Items]    
Capital expenditures 18,750 9,313
Natural Gas Transportation Services    
Segment Reporting Information [Line Items]    
Capital expenditures 4,726 35,498
Offshore Pipelines and Services    
Segment Reporting Information [Line Items]    
Capital expenditures 24,939 38,300
Terminalling Services    
Segment Reporting Information [Line Items]    
Capital expenditures 6,819 8,443
Corporate    
Segment Reporting Information [Line Items]    
Capital expenditures $ 6,257 $ 6,746
v3.19.1
Quarterly Financial Data (Unaudited) (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting Information [Line Items]                      
Total revenue $ 176,962,000 $ 202,346,000 $ 220,217,000 $ 205,829,000 $ 163,037,000 $ 162,290,000 $ 162,030,000 $ 164,078,000 $ 805,354,000 $ 651,435,000 $ 589,026,000
Operating (loss) income (21,878,000) 67,164,000 (7,641,000) (12,377,000) (223,558,000) (20,616,000) (25,574,000) (24,457,000) 25,268,000 (294,205,000) (60,228,000)
Net (loss) income from continuing operations, net of tax (14,719,000) 38,183,000 (17,274,000) (13,838,000) (220,335,000) 11,806,000 (25,901,000) (28,171,000) (7,648,000) (262,601,000) (43,829,000)
Income (loss) from discontinued operations, including gain on sale         1,910,000 44,696,000 (1,801,000) (710,000) 0 44,095,000 (4,715,000)
Net income attributable to noncontrolling interests 33,000 25,000 13,000 45,000 1,087,000 621,000 1,462,000 1,303,000 116,000 4,473,000 2,766,000
Net (loss) income attributable to the Partnership (14,752,000) 38,158,000 (17,287,000) (13,883,000) (219,512,000) 55,881,000 (29,164,000) (30,184,000) (7,764,000) (222,979,000) (51,310,000)
General Partner's Interest in net (loss) income (199,000) 504,000 (225,000) (181,000) (2,883,000) 697,000 (375,000) (420,000) (101,000) (2,981,000) (233,000)
Limited Partners' Interest in net (loss) income $ (14,553,000) $ 37,654,000 $ (17,062,000) $ (13,702,000) $ (216,629,000) $ 55,184,000 $ (28,789,000) $ (29,764,000) $ (7,663,000) $ (219,998,000) $ (51,077,000)
Loss from discontinued operations, basic and diluted (in dollars per share)         $ 0.03 $ 0.86 $ (0.03) $ (0.01) $ 0.00 $ 0.85 $ (0.09)
Net loss, basic and diluted (in dollars per share) $ (0.41) $ 0.56 $ (0.48) $ (0.42) $ (4.29) $ 0.91 $ (0.72) $ (0.75) $ (0.75) $ (4.85) $ (1.60)
Loss on impairment of goodwill         $ 78,000,000       $ 0 $ 77,961,000 $ 2,654,000
Asset impairment charges $ 1,600,000       116,600,000           $ 700,000
Property, Plant and Equipment                      
Segment Reporting Information [Line Items]                      
Asset impairment charges         103,900,000            
Intangible Assets                      
Segment Reporting Information [Line Items]                      
Asset impairment charges         12,700,000            
Out of Period Adjustment Related to Revenue Recognition                      
Segment Reporting Information [Line Items]                      
Total revenue (10,000,000)       $ (13,700,000)            
Error in Recording Earnings from Unconsolidated Affiliates                      
Segment Reporting Information [Line Items]                      
Net (loss) income from continuing operations, net of tax $ 7,800,000                    
Overstatement on Total Revenues and Cost of Sales Due to Error in Gross vs Net Revenue Recognition                      
Segment Reporting Information [Line Items]                      
Total revenue       $ 10,000,000              
v3.19.1
Subsequent Event (Details) - Merger Agreement - Subsequent Event
Mar. 17, 2019
$ / shares
Subsequent Event [Line Items]  
Exchanges ratio per common unit (in usd per share) $ 5.25
Arclight Affiliates  
Subsequent Event [Line Items]  
Ownership interest (percent) 51.00%
v3.19.1
Label Element Value
Partners' Capital, Adjusted Balance us-gaap_PartnersCapitalAdjustedBalance1 $ 180,249,000
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (10,691,000)
Limited Partner [Member]  
Partners' Capital, Adjusted Balance us-gaap_PartnersCapitalAdjustedBalance1 263,151,000
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (10,552,000)
General Partner [Member]  
Partners' Capital, Adjusted Balance us-gaap_PartnersCapitalAdjustedBalance1 (96,691,000)
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (139,000)
AOCI Attributable to Parent [Member]  
Partners' Capital, Adjusted Balance us-gaap_PartnersCapitalAdjustedBalance1 28,000
Parent [Member]  
Partners' Capital, Adjusted Balance us-gaap_PartnersCapitalAdjustedBalance1 166,488,000
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (10,691,000)
Noncontrolling Interest [Member]  
Partners' Capital, Adjusted Balance us-gaap_PartnersCapitalAdjustedBalance1 13,761,000
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Series B [Member]  
Partners' Capital, Adjusted Balance us-gaap_PartnersCapitalAdjustedBalance1 $ 0